<< If these pundits are correct, why has it become so difficult to locate and buy a gold coin?
Because many institutional companies have been transferring their bullion holdings into coins that can appreciate faster then bullion bars.>>
Wait a minute ...just who are these "institutional companies?" Can you name one, or at least describe the class? Where is your evidence? What "coins" are you talking about that appreciate faster than bullion bars? What makes you suggest it's easier to locate and buy these "bullion holdings" instead of gold coin? Guess what, it's not!
<<The demand for gold is setting records. According to the world Gold Council this past week, gold demand climbed 16% in the 2nd Quarter, a record for any three month Quarter ever.
The exchange of gold bullion into gold coins is what is really setting the record. And those are a wash trade. The world gold council distorts the results to suggest that demand is up. But yet the price is falling. So the same marginal excess of supply is leading the push for lower gold. >>
Again, where's your evidence to back up such a claim?
Yes, the gold price has gone drastically lower, especially in the last two years, but that is due to gold leasing by the CBs, not a mobilization of bar by "institutional companies," as you suggest. Is this what you mean by the "SAME marginal excess of supply" that you talk about? "Same" as what?
Bob |
