is there really a physical shortage, page-10

"Are there any gold bulls here that want to have a stab at proving there is a shortage in physical gold."


There can never be a shortage because above-ground tonnage has kept pace with population growth over centuries. Gold changes hands that's all.

It comes down to price and whether holders of this gold decide to sell or not. Under normal circumstances I'd suggest that a holder would be very unwilling to sell below the average global production cost.

In times of panic like 2008 people who hold sometimes need to sell because they have to. This is also what happened in India last year during their drought, farmers sold gold to survive because it was their savings.

In other times, like now, people who hold for rainy day insurance hyperinflation etc, decide to sell because the economy and markets are perceived to be A-OK again.