Look, I'm not just making this stuff up. Here's a reference:
en.wikipedia.org
["I suspect there has to be some component of demand in the equation for what sets the price of gold, no? Look at the demand increases for gold jewellery over the last 5 years and tell me that has nothing to do with the increase in the POG during the same time period?"]
Yes, of course! I basically said the same thing in different words in the last two paragraphs of my last post.
And by the way, I am an electrical engineer and I'm well aware that gold is used for plating electrical contacts, and is often not recovered from the end product, but nevertheless the amount of gold that is thrown away each year is quite a bit less than the amount that is added by new mine supply, so the total in circulation is always growing. The main use of gold is in jewellery, right? And who in their right mind is going to throw gold jewellery in the garbage?
And also by the way, before getting into EE, I used to work in gold prospecting, and I've been following the gold market (and reading lots of gold bug discussion threads on SI) for over 10 years, so please understand these points you're raising are not new to me, and don't describe our discussion as the blind leading the blind.
I'm not saying I don't want to hear it, just make sure what you're saying is well backed up before you click the "post public" button.
Fun-da-Mental |
