Rumors contributing to POG spike.
Bank of England said to be finished selling bullion from holdings.
Because of panicky lowering of short term interest rates by Greenie and the Fed, gold contango is at very low levels (difference between what gold miners and speculators must pay in interest to borrow gold, and what they get in interest on the proceeds invested in interest bearing investments from immediately selling the gold),...bottom line, it is not very profitable for miners like Barrick and speculators like the Goldman Sachs to short sell gold anymore, so the lid is off the price.
Greenie has spewed so many $US dollars out into the market to support the Nasduck and Doomed Jones, that speculators think the least risky bet is now against continuing strength in the US dollar,...so if the US dollar drops, the price of gold in currencies of gold consuming countries like India goes down, so people who like gold will be able to buy more, cheaper. If that happens demand will jump but mine supply is more or less constant and expected to drop in the next few years so demand will jump above supply, the central bank supply is diminished and less likely to fill in the gap, so the POG will rise to ??????? The speculators, like squished hamsters, are jumping on board now ;-))))) |
