You are certainly right.
Pt and Pd don't take much space either, and production
problems in SA are expected to last. -g-
That said, CBs are also the largest hoarders of gold, and
not all CBs are selling - Spain, China, Russia are buying.
If you were to hold $1 Trillion of reserves in USD, and
gold price was soaring 30-50% a year, while your reserves
were dwindling... what would you buy?
There is no mania like gold mania, and we haven't seen
gold mania yet. It's a bull market, with sharp downs, still
fairly early in the game...
The good thing about physical gold - it's money (because
of it's size) - and it's nobody's debt, unlike currencies.
Most certainly, the ultimate safety from derivative chit
hitting da fan. The same cannot be said about gold stocks,
unfortunately. This is paper, even though it's painted with
gold. -g-
The price suppression you were talking about has contributed
to reduced relative valuation of PM miners, and reduced
production of gold, which is actually bullish for the metal.
Mostly it's gold/oil ratio that matters! |
