i had no internet last night or this morning. i’m now in a very “interesting” business center, trying to use a spanish language keyboard. hence, no caps.
having no internet at night lets one’s mind wander on this and that. last night i started to think — after hearing that gold had hit yet another high — who is buying all the gold? strangely enough, it is not etfs …
the black line is the gold held by etfs — still fairly since september, even though the price of gold is taking off.
there is some jewelry buying coming back. and people taking physical delivery of gold contracts can account for some of it. still, the big buyers must be the central banks. and if they’re buying this much, then ask yourself: why? what do they know?
More on this topic
(What's this?)
“This once-shunned tiny penny gold … sitting on 17.3 million ounces.” (Chuck de Castro)
(Stock Gumshoe, 11/12/09)
“Bursting with Gold: Newfoundland’s Golden Mountain” (Dan Ferris)
(Stock Gumshoe, 11/16/09)
Why the Gold Bubble Will Peak at $2,000 in 2010
(Money Morning, 1/23/10)
Time to load up on gold and silver?
(Real Wealth - Global Wealth Report, 1/29/10)
{ 5 comments… read them below or add one }
You are at least 100 times smarter than me on this subject, but how can you say that inflation is not a cause for the gold price increases ? The definition of inflation is “to many dollars chasing to few goods and services”; that appears to me to be exactly what is happening and will get much worse in the next few years. Thus, anything denominated in dollars will probably lose value relative to hard assets. I have the highest respect for everyone connected with the Weiss organization, so could you tell me where I have gone wrong. THANKS.
They know that, the sh?t is ready to hit the fan !
Ha well the central banks know that they are going to devalue currency until it’s practically worthless and thus inflation and possibly hyperinflationary fears are very evident. Gold is seen as a hedge against this, so makes sense.
Very scary stuff though.
-Jay
marketfolly.com
I believe that China will be the one to “pop” the gold bubble when the time comes. It is involved in it’s own version of swaps that will eventually solve it’s problems with the U.S. Dollar. How? Why? It’s real targets are other commodities that have industrial uses (i.e. oil, silver, copper, iron, etc.). That is what China really wants. The gold is a means to an end. To compete with China in a Global market, The other major exporting nations will have to devalue their currencies. The U.S. Dollar will be raised without any other effort by China. My guess is that China will eventually involve it’s Gold reserves in some sort af swap arrangement which will in reality result in a “defacto” dumping of gold. This will enable it to recover it’s investment in U.S. Dollars AND acquire the natural resources it really covets. Let’s not kid ourselves, China is the 800 LB. Gorilla in the room. China can do this.
I’ve just read a condensed version of the World Gold Council’s report released 11/23/09. I would imagine that it upset many Gold bugs. It appears that most of the buyers of Gold are not interested in owning the actual metal but only in the speculation that gold will go higher. The thinly traded volumes of late only serve to reinforce this conclusion. If the rest of the world does not jump on this Gold bandwagon soon, I believe Gold is in for a major correction.