It seems to me either you have missed seeing the following excerpts or have somehow forgotten about them:-
Excerpts from: John Kutyn's articles in Gold Digest at gold-eagle.com
1. If we accept that government bonds and currencies are at
best an illusion of wealth, and that stock markets trading at 5
times book value may be over-priced in view of falling profits
and currency upheaval, then the only investment alternative is
gold. Realizing this, governments have driven down the price
of gold. In order for the world to continue to believe in the
government promoted illusion, the price of gold must continue
to fall. If the world were not on the edge of an economic
collapse, the price of gold would not be so low.
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2. The demand for gold is now the highest it has been in the
history of mankind. At the time demand is increasing, central
banks around the world are telling people that gold is a
terrible asset, while they flood the market within their gold
loans to drive down the price. If ONLY 1% of the U.S.$12
TRILLION in Japanese savings moves into gold, this
represents a demand for 400 million ounces at today's price.
This will force all shorts to cover, which are reportably as high
as 8,000 tons. Combined with normal industrial demand, this
would explode gold demand to a level equivalent to 10 years
of mine production. Should more than 1% of Japanese
savings, or other investors in the world purchase gold, even
this number will be ultra-conservative.
Having said that I must observe that in the short-term, the
price of gold may continue to suffer... due to the public's
current mis-guided perception of gold. NONETHELESS, it
behooves us to understand and appreciate that the short
position is so huge that it cannot possibly be covered.
Therefore, the only hope for salvation of the shorts is (try) to
destroy the value of gold.
The laws of economics are like the laws of science. They are
based on logic and reasoning and pure mathematics. When man
chooses to ignore these laws or create new ones unto himself, he
must face the ultimate consequence. One day we will go to sleep
as the world is now. And when we awaken, it will have changed in
a manner that will never be the same.
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Excerpted from: forbes.com
Gold market professionals agree that overshadowing the various species of
short-sellers, mine-hedgers and lesser central bank disposals, there has been a truly immense seller. This seller has brutally crushed several promising rallies, nullifying usually dependable technical indicators and enormously encouraging major short-sellers, who are now confident that they can easily cover their positions. The culprit is widely suspected to be the Dutch central bank, perhaps with accomplices.
What's the Dutch game? A good guess is that the Netherlands Central Bank fears that the
European Central Bank coming onstage in 1998 will ban the conversion of gold into
income-producing assets. The Dutch supposedly want to beat the deadline, expected to be very early in the year. |
