On the supply front, according tothe WGC, “No single country supplies more than 14% ofglobal gold production”. While South Africa once dominated inproducing gold, the country now accounts for only 8% of the globalsupply. In 2010, China was the largest single countryproducer with a 13% share, followed by Australia (10%),United States (9%), and Russia (8%). Meanwhile,gold supply from scraps or recycled gold continues to be the modest.
MCXGOLD.995 04 February 2012 contract was trading atRs 27759.
A bout of volatility was seen in white metal silver too.Silver witnessed a roller coaster ride in 2011 and was caught in investors'wrong foot. Like Gold, silver also made its peak in 2011 and tested nearly $50in COMEX and above Rs 73000 in MCX. April and May were the most volatile monthfor silver in the year 2011; silver prices rose by 32% in April while fell 28% in May 2011 due to steep hike in margin byCOMEX and liquidation by some big players and hedge funds. Meanwhile the gold silver ratiodeclined steeply in the first half of 2011 from nearly 47 to 32 as silveroutperformed gold. However, the ratio again recovered during the second half ofthe year 2011 from 32 to above 47.