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Gold/Mining/Energy : Gold Price Monitor
GDXJ 98.59-2.8%Nov 13 4:00 PM EST
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To: Crimson Ghost who wrote (61334)11/26/2000 8:53:21 PM
From: goldsheet  Read Replies (1) of 116762
 
< If one looks at gold as a percent of global money supply or the value of global financial assets -- those ratios are at record lows. >

I can not argue with those facts, but while the ratio are most interesting the market currently does not look at gold that way. Maybe it will (again) someday, hopefully in our lifetimes ;)

I was re-thinking my previous observation that available gold has doubled in the last 40 years and it is actually worse than I thought. In 1960, about 2.2 billion ounces had been mined and 1.2 billion (55%) was in central banks, leaving a "public float" of 1 billion ounces. Now, almost 4 billion ounces have been mined and 1 billion (25%) is in central banks, leaving a "public float" of 3 billion ounces. This is a tripling (3X) of "public float"

Another observation would be central banks now have less power to manipulate gold with 25% than they did 40 years ago when they held 55%. If anything I believe $275ish is the most "correct market price" of gold in history, having been freed from historical government price fixing ($42.22 is too low), and correcting from it overshoot to $800+ in 1980. Of course, this leads into my previous theory - "We will never know the true price of gold until all central banks distribute all of their reserves into the marketplace"
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