Ron,
Most gold bugs' monetary thinking is stuck in the last century......the day will soon come when all central bank reserves are sold off....the cost of wharehousing gold will then be born by the producers and sellers, probably at LME wharehouse vaults....the notion of gold bars sitting in vaults and collecting dust is ludicrous.....when the banks quit supporting the price, and supply- demand comes into the picture, I believe we will see lower prices which will be good for consumers and everyones standard of living....I prefer to see gold working in things like chips in computers, control systems, robotics, comsumer electronics, etc....where it enriches everyones lives(rather than sit in vaults collecting dust)....the cheaper gold is, the more we all benefit(except for gold bug speculators who help provide liquidity to the continuing demonitizing of the metal).....advertizing planned sales by the central banks is part of a plan to generate liquidity for themselves as they unload at ever lower prices...they are deliberately walking the price down to historic trading and pricing multiples to the price of silver($US180-200/oz).......when the central banks have finished liquidating and stop buying gold on demand, then we can truly let supply and demand set prices, which I believe will be far lower and more affordable, thus increasing utilization in the economy and enriching everyone's life......World bank divestitures are another interesting event....matching third world gold sales utilizing the proceeds for third world aide and development.....why not utilize gold bugs' capital to try and do some good in the world eh?
regards,
teevee
PS: maybe the price would go up if gold bugs would increase their resolve and put a greater portion of their net worth into gold....move up to 100% in gold and help create some additional liquidity for the central banks and world bank developers:_))..... |
