Now you are catching on. You want to encourage the cb's to sell. The difference, they would be selling in reaction to the producers and therein lies the problem for the CB's. Of the 31000 tonnes they have in inventory, as much as 12000 tonnes has been leased. Of the remaining 19000 tonnes, better than 12000 tonnes will not be sold under any circumstances. This is the amount held by Germany, France, Italy, and the remainder of the Swiss hoard. Of the remaining 7000 tonnes of so, much of that may have been used to collateralize loans, short sales, etc. There may be very little available gold left to filter into the market. The producers mining this remaining amount instead of drawing on economic gold out of the ground will gain the controlling force of the gold market. If there efforts are coordinated and newsworthy, the gold market will be destabilized for awhile with the price of gold quickly returning to its true equilibrium level.
Take off the blinders and view the gold market for what it should be, a business operating on an auction basis without the interference of the cb's whose only agenda is maintaining a tenuous homeostasis of the worlds financial markets that are reeling from the debasement of paper currencies. The game can only be played with the producers as reactive participants to the whims of the cb's.
Ken |
