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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: TrueScouse who wrote (11472)	11/14/2009 7:24:09 AM
From: Wade	Respond to of 48092

I never thought or say gold is a commodity. I have no idea where you get that idea. The fact is that gold is dug out from the ground and refined to high purity, which is expensive to produce. I feel that is was you and Saville made it sounds like a commodity. Not me. I agree that gold is a currency and a store of value, however, most of the gold stockpile sits in the vaults of cnetral banks most of the time, not available for trading. Therefore, they are not part of the market supply for trading until central banks decide to sell or lease it in incremental quantities for whatever the reasons. One can't count on this kind of supply is there for trading at any moment. I disagree with you that that annual supply of gold is a minor factor driving the price of gold. You saw the reactions of 200 tonnes of gold Indian bought lately. If you just buy 1 tonne of gold, forget about 5 tonnes per day I mentioned yesterday, out of 650 tonnes daily trading volume, from the market directly day you will see huge impact to the market balance.