Apple Major New Gold Buyer - Propel Gold Higher?

- 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
- May have enormous ramifications for gold market and propel prices higher

New Luxury Apple Gold ‘Watch’

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. 

Today’s AM fix was USD 1,196.50, EUR 1,090.60 and GBP 787.85 per ounce.
Yesterday’s AM fix was USD 1,199.75, EUR 1,082.67  and GBP 786.46 per ounce.

Gold fell 0.12% percent or $1.40 and closed at $1,198.00 an ounce yesterday, while silver climbed 0.19% or $0.03 to $16.21 an ounce.

Important News 

Gold Hovers Near $1,200, Set For Weekly Dip On Robust Dollar - Reuters
Fed Says 31 U.S. Banks Could Weather An Economic Storm - Bloomberg
Soft U.S. Data Hints At Near-Term Hiccup In Economic Growth - Reuters
After Greece, These Elections Will Shake Up Europe - CNBC
PDAC 2015: McEwen Sticks To US$5,000 Gold Forecast – Financial Post
SFO Launches Investigation Into Bank Of England Auctions Amid Rigging Fears – The Telegraph

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Courtesy of http://www.goldcore.com