I think Gold is no real demand from the consumers above $650, all the demand is from speculators. You know how speculator demand holds in the long term.
all of you present very good arguments. as a result, i will not buy simply because its too hard to decipher all of this.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aIwFmyvJJiv4&refer=home Very poor argument in the above article but it is relevent to this discussion.
Buy land, grow food, buy guns, protect land and food…that is the future…
kevin0118 Wrote: ------------------------------------------------------- > Buy land, grow food, buy guns, protect land and > food…that is the future… add global warming to all that and you get waterworld. i’m getting my fish gills installed next week by my friendly neighborhood plastic surgeon.
What about this… Central banks around the world hold about 20% of all gold that has ever been mined. What if the BRICS began to increase their gold holdings? 1. BRICS foreign exchange reserves - currently the BRICS hold a very small % of their foreign exchange reserves in gold as compared to many developed economies. Brazil: 0.4% Russia: 2.1% India: 3.1% China: 0.9% vs. U.S.: 77.3% Germany: 66.4% France: 57.8% Italy: 67.0% Japan: 2.1% UK: 15.4% Canada: 0.2% Especially China, which recently became the largest (and cheapest) producer of gold in the world. If China decided to start holding 10% of their foreign exchange reserves in gold (instead of 1%), they would require approximately 5% of all gold ever mined. Also, the gold market (actual gold holdings) is relatively small. Only 145k tons of gold or so out there…something like $4.3 trillion dollars or so…seems pretty small in comparison to what we have going on. Does not take much to change the value.