The thing I can't to seem to get my head around is this:
"Estimated" total gold ever mined = 160,000 tonnes.
You would have to think most of the gold ever mined is still around.
COMEX warehouse stocks = 265 tonnes.
That is about 0.16% of the world's TOTAL gold.
Why would COMEX stock more gold than 265 tonnes, when they have never had to "supply" even close to that amount in the past? I'm sure they could access more if "needed".
The price for 1 ounces of gold is based on ALL gold, not just COMEX gold.
Wouldn't the gold price just spike temporarily until many many more tonnes become available because of the higher gold price?
Could anybody "help" me with my "small brain syndrome"?
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Heres an example
Holden had to shut down all it's dealerships except one because of a deep recession. This "one" dealership only stocked 50 Commodores. What would happen if 100 people wanted those Commodore's?
a) The price double for each car
b) They take orders and supply more from the plant at the same price?
c) The car is sold at a premium, with no discounts or extras until demand settles?
d) What are you talking about Sharpshooter?
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