If China and India were the only countries importing gold that would still be a problem on its own in terms of balancing the supply/demand equation this year, but they are not. Central Banks in other countries are still buyers with perhaps up to 450 tonnes being purchased this year and then there is ample demand from the public in many other nations, particularly in the Middle and Far East, which have cultures which embrace gold ownership.

All indicators suggest that there could indeed be a very large supply deficit building.