There is an argument going around (I didn't start it!) that the supply/demand relationship IS working, at least for gold. The theory says that every time the GP is crashed to support the USD, the shelves are stripped, largely by China. I.e. They are buying on the dips.
Non-Western CBs are almost exclusively the buyers. They are in effect, supporting China to build its bullion stock in readiness for China's pivotal role of influence when the USD fails as the international trading currency.
China reports it's gold holding only once every 5 or so years. On that basis, next year might be the year we find out that they have somewhere near 5,000 tonnes.
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