It is fairly obvious that much of the demand for gold is in the jewelry sector. Should a slow down in the economy occur here and abroad, it is apparent that the demand for jewelry will drop. This type of demand relegates gold to a commodity and subject to a drop in price with a lessening of demand. The shorts are lining up for this and with a little tweaking from the central banks, 250.00 is a given. The only problem, which of the producers is going to retail the additional supply of gold from the cb's. Ring, Ring, hello barrick gold.....this is john smith from the x central bank, please put me thru to the CEO. Hi, peter, I will be brief, we have some bullion we want to pass thru, can you help us out by collateralizing it with some of that new production you are racing to get on line. Alright, let me check how much we can handle, lets talk about this over some caviar and champagne tomorrow, you can wire concorde tickets to my office and I will be on the am flight.
That is how I know.
Ken |
