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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.93-1.8%Nov 14 4:00 PM EST
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To: TobagoJack who wrote (40687)10/4/2008 10:38:27 PM
From: prosperous1 Recommendation  Read Replies (2) of 217792
 
Based on recent news, central bans have stopped/reduced gold sales and many banks are in accumulation mode. The shortage of physical metal on consumer front is indicating public has started accumulating old, which I presume is backing a certain percentage of their portfolio. Are we then not indirectly moving to a gold standard where we are backing up our paper assets with gold for whatever reason? may be the only entity missing in the gold buying is corporations.

It seems to me though that we will have gold sold hard in a market correction that will likely follow in next few months to clear margin calls etc by hedge funds creating even a better buy point, although I think gold will be very available for public to buy in very limited quantity even if the price drops in future (only new coins minted at a very high spread as evidenced by dealer quotes available to only early birds just like how Wii used to sell :-)). A lot of people have bought gold in the 800-950 range and unlikely to sell to create a liquid market until financial stability is back, its possible that many think that phy demand is not reflected in the price. Looks like regardless of the govt desire to keep stock and housing asset values high we will see values clearing up on stocks first, houses later, and then huge printing to push gold up in another 12-18 months.
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