I think of gold just a little bit.
I think of gold as a variation of a a Giffen good economicshelp.org for demand rises as price rises, and strangely, as price drops, gold becomes an ordinary good, demand rises, but different sorts of collectors / hoarders.
but if anyone wishes, as suspect Bloomberg likely to be so, to caste gold in negative light, can always do so, but rotate in and out of below article titles in sequence as the facts come to suit ...
Central Banks Become Net Sellers Of Gold For First Time In A Decade
Gold Jewelry Owners Become Net Sellers Of Gold For First Time In A Decade
ETFs Become Net Sellers Of Gold For First Time In A Decade
All the gold (newly mined, recycled, and above-ground stock) is taken up at all times, modulated by price. There is no such thing as unsold-gold, as there are unsold diamond, oil, natural gas, etc etc television sets, Tesla, etc etc
For given new gold mined every year is between 2-3% of total above-ground stock, it does not make a lot of sense to speak of supply (new supply is fixed at 2-3% of above-ground stock, by mining and recycling, full stop), as at the right price all above-ground gold becomes available, and
It certainly makes little sense to tallying demand, for the demand is a function of price (untrue of hamburgers and oil, for examples, for one can only eat so much and burn so much), and at some price all gold would be bid even if not offered.
Somebody is always disgorging gold and other bodies always hoarding gold, zero-sum modulated by price. |
