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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (123544)	7/16/2008 2:01:56 PM
From: Nevada9999	Read Replies (3) \| Respond to of 312695

True, that is more or less what Jim Rogers said, but add: European central banks have agreed not to sell more than 500 tonnes/year. Mine supply is something like 2500 tonnes/year. Gold demand is about 4000 tonnes/year. This situation is relatively stable, but does put a floor under gold because governments don't want to see all the mines fail, that just makes it harder to keep gold down. The wild card is investment demand. All the above ground gold in the world is worth less than the mortgage debt 'owned' by Fannie and Freddie. The dollar value of gold out there is miniscule compared to the perceived value of all of the currency that has been printed. If a thousand of the richest people in the world wanted to put 10% of their net worth in gold the price would go up faster than GXS. You believe our financial system is safe, but some people are getting a little nervous. It won't really take that many and the central banks will be helpless.