John Read Demand Quotations

Base and precious metals are considerably above what we consider to be fair value - based on fundamental supply and demand factors - but events of the past two years have demonstrated that investment and speculative flows are very capable of lifting prices well beyond fundamental fair value.

We need to find the level at which underlying physical demand will support gold. Until then, I wouldn't be comfortable with gold up here, because it's all investment and speculative money at the moment.

We recognize that prices are above what is justifiable on the basis of supply and demand fundamentals.

I do believe that the recent run up in gold has been almost entirely driven by speculative and investment demand as jewelry demand has fallen sharply.

The level at which physical demand emerges to support the metal will then form a base for gold to make fresh gains.