Thursday, January 21, 2010

Gold pricing, demand and the Hype

At $1300 per ounce  we're talking $17.47 Billion (that's Billion with a Big "B" folks!). If the writer is suggesting that the entire run-up in gold, or even most of it is due to ETF purchasing, I suggest he look elsewhere.
   At a minimum, Chinese and Indian consumers buy LOTS of gold in lieu of savings-so do their financial intermediaries.
In any case Inflation "believers haven't changed their position at all.
Add to this, the many new casual gold buyers ("sell your old gold?"- and the many new merchants -Captain what's-his-name from Law and Order- now Scott Winters, and others and it seems to me that the Gold hype is still working.
If that is the case, that 420 tons will easily find homes, and then some.

Posted via email from dis's posterous

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