There is a major new buyer in the gold market, Apple. New Apple watch could use up to one third of total annual gold supply. Apple expects to sell one million gold watches per month. Each watch to use up to two ounces of gold.
Apple may consume up to 746 metric tonnes of gold per year in the production of its new luxury Apple watch, due for release in April. This equates to roughly one third of gold’s total annual global mine supply.
The watch will come in three varieties – the entry level “Sports” model, the mid-tier “Apple Watch” and the upper end “Apple Watch Edition” which the company says will be made of 18k (75% pure) gold and is estimated to retail from anywhere between $4,000 and $10,000.
Apple (APPL) have ordered their manufacturing plants in Asia to produce between 5 and 6 million units. Around half of these will be the Sports model which is expected to retail for $349.
Around one third of the order will be made up of the mid-range watch leaving an estimated one sixth of the order to be comprised of the gold edition.
Tidbits, the independent blog discussing all things Apple have estimated that each watch will use 2 ounces of gold.
While this may be an over-estimation – a watch made of 75% gold would be be quite bulky if it used a full two ounces – it is not impossible, especially if buyers were to opt for a gold bracelet with the watch.
Apple’s reported expectation to shift one million units of the Edition model will be a tall order. In the end it will probably come down to the price. Even at the lower end estimate of $4,000 it’s hard to imagine Apple shifting one million units each month.
However, Apple’s ability to generate a buzz or hype, depending on your perspective, cannot be under-estimated.
While details concerning the actual function of the Watch do not suggest a “must-have” motivation for buying it – at least on technological grounds – Apple raving fans may create the massive demand the company expects.
It does not have the element of indispensable usefulness that one could associate with the iPhone or iPad. The major attraction of the ‘Watch’ will be a fashionable one and be about being part of the Apple ‘tribe.’
This is not a terrain in which we would normally expect a technology company to operate in comfortably. However, Apple have recruited the former CEOs of Yves Saint Laurent and Burberry to make up for their lack of expertise. It will be interesting to see how this synergy works out.
We wonder how many people would be willing to shell out for a jewelry and technology hybrid with an expected usefulness of roughly five years when the most expensive element in it is its gold content.
These types of purchases are normally made with a view to it being useful and having sentimental value for a lifetime. Perhaps Apple will offer upgrades where the interior of the watch can be replaced while keeping the same gold exterior.
If the Watch Edition is to be successful it will require quite a leap in the psychology of jewelry buying. However, we would be hesitant to bet against the capabilities of the Apple marketing machine and the loyalty of Apple buyers in this regard.
Should the Watch Edition retail at $4,000 it should leave Apple reasonable room to manoeuvre in the event of a spike in the price of gold. If Apple were to use a full two ounces of gold it would currently cost them roughly $2,400.
Assuming other costs are not much greater than those involved in producing the Sports model which is expected to retail at $349, we can assume that Apple will have a buffer of around $1,200, to absorb a gold price spike of 50%. These figures don’t include marketing costs or expected profits.
The CultofMac blog speculates that Apple would need to wrest 45% of the share of luxury watches from the likes of Rolex and other high-end Swiss watches to meet its target. It is, however, likely that Apple will attract lot of customers who would not normally be in the marketplace for luxury watches.
One million units per month using 2 ounces of gold would amount to the 746 tonnes of the metal mentioned above.
While Apple may not use that amount of gold per unit and may not shift its expected volume of units, what is important is that there is a major new buyer in the gold market. Where Apple goes – others may follow creating additional sources of demand.
The ramifications for the gold market based on these estimates are significant. Currently, China is already buying more than 1,500 metric tonnes annually or more than 50% of global supply.
Creditor nation central banks, particularly the Chinese, are diversifying their gold reserves and accumulating large amounts of bullion on an ongoing basis.
Many central banks, including Germany, Austria, the Netherlands, Belgium, are repatriating their own gold reserves from the Federal Reserve and the Bank of England. Many analysts 老虎证券 believe that this is forcing their counter-parties into the market to regain gold that should be in their possession but was dumped onto the market as part of the gold-suppression scheme.
With an enormous buyer like Apple coming into the market, supply is going to have to come from existing stocks of gold. That is to say, supply does not exist to meet this new demand.
Assuming Apple are successful in pitching their new watch to the very rich and trendy, in the real world, where markets are driven by supply and demand fundamentals as opposed to central bank dictats and manipulation, this can only translate into higher gold prices.
We expect to see demand and supply fundamentals to reassert themselves in 2015 and we believe that the demand provided by Apple may push prices higher this year and more importantly in the coming years.
viamedic cialis ciprofloxacin 500mg antibiotics viagra tesco cost of viagra viagra for sale uk cipro side effects in elderly side effects of azithromycin 250 mg finasteride and enlarged prostate lexapro coupons cialis effects cialis patent expiration date extended acyclovir for shingles online viagra finasteride 5mg side effects mayo clinic side effects of ciprofloxacin 500 mg cialis pills discount viagra is lexapro a controlled substance does lexapro cause weight gain viagra for men side effects of lexapro 10 mg how to use viagra generic for cialis buy viagra online azithromycin 500 cialis otc viagra vs cialis revatio vs viagra antibiotic ciprofloxacin post finasteride syndrome cheap levitra viagra alternatives cialis reviews cialis or viagra when will cialis go generic price cialis generic cialis at walmart finasteride for women zithromax dosage cialis pharmacy prices azithromycine what is azithromycin for side effects of cialis weaning off lexapro azithromycin three times a week what is ciprofloxacin prescribed for cialis for men levitra 20 mg cost walmart nolvadex finasteride long term effects ciprofloxacin ophthalmic solution escitalopram 10 mg para que sirve ciprofloxacin 250 mg azithromycin 250mg finasteride dosage levitra equipe argentine viagra side effects of azithromycin lexapro para que sirve ciprofloxacin side effects buy levitra online azithromycin pregnancy category finasteride side effects in men viagra vs cialis vs levitra how does lexapro work lexapro withdrawal symptoms viagra 100 cipro for uti azithromycin coverage ciprofloxacin 500mg lexapro levitra vs viagra for hardness lowest cialis prices acyclovir ointment 5 tamoxifen zithromax antibiotic finasteride effets secondaires side effects of finasteride 5mg lexapro 20mg finasteride medication lexapro and weight loss azithromycin without a doctor’s prescription what is escitalopram lexapro bula how long does viagra last how does viagra work ciprofloxacin hcl acyclovir cialis 20 mg lexapro benefits for women viagra samples how to wean off lexapro without withdrawals lexapro generic name cialis coupons viagra kaufen where to buy viagra acyclovir dosing what is finasteride generic viagra viagra side effects zovirax pills cialis patent expiration 2017 cialis cheap azithromycine eg 500 mg bijsluiter canadian viagra levitra rezeptfrei deutschland 200 cialis coupon viagra single packs zovirax cream lexapro dosages erectile dysfunction cialis lexapro dosage levitra vs viagra cialis sample side effects of viagra cialis coupon print what is finasteride used for lexapro side effects viagra tablet lexapro dosing viagra medicine side effects of acyclovir wholesale cialis cialis cost cialis 5mg azithromycin medscape finasteride efectos secundarios cipro dosage canadian cialis cialis canadian pharmacy cialis 5mg daily sophia viagra over the counter viagra lexapro vs celexa escitalopram 10mg ciprofloxacin 500 mg tabletten levitra 10 mg prezzo levitra coupons lexapro generic cialis discount what is lexapro for viagra cialis cialis coupons printable vardenafil vs viagra cilias acyclovir cream cipro how to take cialis viagra sans ordonnance liquid cialis tamoxifen and bone pain propecia side effects cyalis viagra natural what is azithromycin used for ciprofloxacin spc zoloft vs lexapro online cialis lexapro side effects men cialis for daily use viagra on line no prec viagra pills levitra generic lexapro vs zoloft ciprofloxacin coverage tamoxifen and weight gain best price viagra azithromycin 250 acyclovir 800mg pfizer viagra coupons from pfizer side effects of lexapro in women generic levitra vardenafil 20mg azithromycin class tamoxifen lawsuits how to wean off lexapro viagra wikipedia effects of stopping lexapro suddenly herbal viagra buy generic viagra cialis trial viagra for women what does ciprofloxacin treat finasteride 5 mg cialis without a doctor’s prescription ciprofloxacin drug class tamoxifen side effects viagra 100 mg daily cialis azithromycin for strep throat escitalopram nebenwirkungen viagra for sale what does ciprofloxacin 500mg treat side effects of lexapro cialis side effects side effects of ciprofloxacin azithromycin 500 mg zovirax cialis female viagra azithromycine 250 mg zovirax dosage what is tamoxifen finasteride hair loss what is lexapro lexapro withdrawal what is acyclovir used for azithromycin dosage cealis what is tamoxifen used for finasteride 5mg side effects escitalopram 10 mg ciprofloxacin side effects in women generic cialis tadalafil ciprofloxacin 500mg antibiotics side effects cialis price canada cialis ciprofloxacin dose is azithromycin what is cialis how long for azithromycin to take effect cialis coupons from manufacturer what is ciprofloxacin stopping lexapro cipro antibiotic how does cialis work cialis alternative azithromycin vs erythromycin tamoxifen therapy natural viagra buy viagra cipro uses is ciprofloxacin a penicillin finasteride permanent side effects women viagra utilisation viagra levitra prices viagra pillen kruidvat ciprofloxacin side effects after age 60 tamoxifen cost viagra bestellen side effects lexapro how long for lexapro to work escitalopram side effects finasteride 1mg azithromycin pregnancy escitalopram 20 mg lexapro overdose cipro antibiotics cialis patent expiration what is cipro used for finasteride results cheap cialis viagra on line cialis 10 mg wellbutrin and lexapro finasteride 5mg viagra tablets cialis website lexapro reviews azithromycin 250mg tablets 6 pack acyclovir ointment what is ciprofloxacin used for acyclovir 800 mg for shingles cialis from canada viagra ohne rezept aus deutschland what works better than viagra how to get off lexapro finasteride reviews is tamoxifen chemotherapy cialis pricing levitra online azithromycin cost ciprofloxacin hydrochloride cialis tadalafil cialis for sale azithromycin tablet viagra prices tamoxifen and foods to avoid ciprofloxacin 500 mg azithromycin 250 mg lexapro side effects in men viagra vs cialis vs levitra cialis professional cost of cialis cialis 20mg ciprofloxacin 500 azithromycin z pak lexapro and weight gain in women acyclovir medication viagra effects ciprofloxacin 500 mg for urinary tract infection is azithromycin penicillin ciprofloxacin 500mg tablets cialis vs viagra viagra 100mg tablets retail price buy cialis online cialis 30 day trial coupon finasteride vs dutasteride lexapro vs wellbutrin cialis coupon 20 mg lexapro weight gain ciprofloxacin nebenwirkungen canada viagra buy cialis ciprofloxacin for dogs viagra en ligne livraison 24h cipro dangers zithromax cipro and tendonitis viagra pill first few days on lexapro what is viagra cialis daily acyclovir dose viagra canada azithromycin 5 day dose pack finasteride tablets viagra generic ciprofloxacin used for zithromax z-pak what is cipro acyclovir 400 mg cialis savings card cipro side effects cialis online acyclovir 400mg acyclovir dosage for cold sores free viagra viagra costs viagra generico viagra cost tamoxifen nebenwirkungen buy generic levitra cialis testimonials azithromycin for uti azithromycin pediatric dosing viagra soft what is lexapro used for lexapro for anxiety acyclovir dosage tamoxifen langzeitfolgen what is acyclovir for what does viagra do cialis generic viagra substitute viagra wiki acyclovir vs valacyclovir ciprofloxacin uses tamoxifen interaction viagra online tamoxifen bijwerkingen 9 levitra at walmart cialis medication cipro drug class azithromycin eye drops viagra azithromycin tablets zovirax ointment acyclovir 800 mg finasteride 5 mg tab azithromycin 500mg lexapro medication tamoxifen side effects in women over 55 viagra activate viagra without a doctor prescription usa viagra price ciprofloxacin hydrochloride ophthalmic order viagra levitra 20mg pfizer viagra viagra nebenwirkungen levitra 20mg cost per pill cialis 30 day sample cialis on line effects of stopping finasteride buy levitra cialis canada viagra uk ciprofloxacin dosage lexapro 5mg zithromax 500 mg cheap viagra sex viagra for women generic levitra ciprofloxacin bnf ciprofloxacin dosierung cialis samples overnight azithromycin 500 erfahrungen side effects of tamoxifen ciprofloxacin hcl 500 mg side effects levitra coupon levitra dosage cialis dosage recommendations cialis 20mg directions lexapro side effects in women azithromycin how much does cialis cost what does azithromycin treat cialis free trial finasteride for hair loss escitalopram effets secondaires lexapro 10mg viagra ohne rezept auf rechnung generic lexapro azithromycin for pneumonia levitra vs viagra cialis dosage propecia viagra dosage ciprofloxacin hcl 500 mg tab levitra 20 mg cialis 5 mg ciprofloxacin drops levitra without a doctor prescription escitalopram viagra alternative withdrawal from lexapro azithromycin side effects cialis dosage strengths levitra 20 mg von bayer what infections does ciprofloxacin treat vardenafil 20mg acyclovir side effects acyclovir for cold sores what is azithromycin finasteride 5mg tab levitra erfahrungen azithromycin liquid acyclovir 200mg what is cipro usually prescribed for tamoxifen citrate levitra bayer 20mg meilleur prix cialis pills for sale lexapro and weight gain common side effects of ciprofloxacin 500 mg what does finasteride do celexa vs lexapro lexapro 10 mg what is acyclovir what bacteria does ciprofloxacin kill cialis coupon viagra coupon azithromycin and alcohol viagra 50mg finasteride side effects viagra without a doctor prescription viagra vs cialis lexapro manufacturer website viagra coupons cipro 500 cialis for bph cialis generic availability cialis for women lexapro and wellbutrin combination therapy cialis samples ciprofloxacin 250mg side effects of finasteride cialas finasteride generic for lexapro cialis prices cialis voucher buying viagra thuoc azithromycin ciprofloxacin free cialis how does acyclovir work acyclovir 800 mg 5 times a day zovirax for cold sores viagra sex generic cialis levitra 20 mg precio farmacia azithromycin 250 mg treatment azithromycin uses viagra receptfritt generic viagra 100mg azithromycin drug class ciprofloxacin hcl 500 mg cialis coupons 2017 viagra from canada cialis vs viagra levitra prezzo in farmacia ciprofloxacin class cialis copay card escitalopram oxalate tamoxifen side effects in women ciprofloxacin eye drops cialis generic tadalafil discount cialis viagra 100mg