Central Banks selling,... floading the market with gold? If every american bought one American Eagle this year = one ounce of gold = 28 gm.
In one ton of gold, we have 1000 kg = 1,000,000 gm = about 35,700 American Eagles (1,000,000 gm/28 gm). ONLY 37,500 American Eagles per ton of gold!.. The total world production of new gold this year is about 2000 tons (I will have to verify that)... that means we would have only 2000 x 35,500 = about 71,000,000 American Eagle for a US population of 266 million. We would need therefore 3+ full years of production to give just one american eagle per person.
Central banks already sold a fair amount of gold! Netherland 300 tons, Australia: all its reserves = 300 tons... you see that these figures are peanuts if the world population decides to hoard some gold...!
Correct me if I am wrong.
Central bank selling, IMHO, is just a psychological pressure on gold, IMHO. Conversly, if rumors are spread that some societies are hoarding gold... the price of gold could go way up.
Gaston |
