| | | I believe that estimate may be on the low side and I also believe that it is the central banks of the BRICS purchasing that is the reason gold is climbing and will continue to climb.
I don't think you get it. Central banks are the big buyers of gold and also the market makers. The price will be what they want it to be. From a historical perspective, back in the early 80's when gold went to $800/ounce because of high inflation, at that time, the central bankers from the G-5 got together and decided that they would create gold trading vehicles, mostly to help them manage the price, the primary reason being to ensure that confidence in "coin of the realm" was always maintained....what that means is that over and above being the guaranteed gold buyers for the miners, the central banks will step into the market to either buy, or if need be, "piss on the fire".......briefly, if you believe gold is oversold or overbought, act accordingly, and before the central banks beat you to the trade:-)...... |
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