banks shorting gold - not forced selling, page-30

Hi there Nk,

The key to your argument is that “Peak gold has been reached …” By this, I understand you to mean that there are constraints to growth in production, and that production will remain flat irrespective of the increases in price.

My counter to this argument is to observe the time lags between observed price increases, exploration, development and eventual production, and to note that while a 40% decrease in grade is an impediment, a 700% increase in price is more than reasonable compensation.

We may have different timing assumptions.

The claim that central banks are buying gold interests me because I have seen no evidence for this at all in the West. If it is true, then I can only conclude that the madmen have taken over the asylum. Gold won't save the payment system.

Good luck