banks shorting gold - not forced selling, page-21

BradlyBear

I think that gold prices have risen because demand has outgrown supply. That the growth in demand was cause by fears associated with the GFC is most probable. I think that this is a temporary situation, but not because the GFC will be resolved.

In the long run the gap between production costs and long term gold prices will bring previously non comercial deposits into production increasing the rate of growth in inventory. Unless demand increases to absorb that new inventory, the price of gold will fall.

Because I think that the nature of the demand for gold is transient, I expect the eventual correction to be extreme.

Good luck