Skol, correct me if I am wrong, but the instos are not buyer or sellers of gold. They trade pieces of paper between each other representing something that does not exist. The gold they trade actually does not exist. Lord knows why anyone will play this game.
Funny, but every time the price of gold spikes up I get phone calls from ETF traders in Hong Kong with think Cockney accents expaining to be that now is the time for me to get in... you know... put up 5 grand for a 50 grand ETF contract of gold.
This happens every time the price spikes up like 10% or so.
It is so obvious that they guys are trying to find mug moms and pops - and they are hard, hard sell. Lord knows where they got my phone number from.
I only counter with two points: it is not my nature to buy things after a spike UP; and I dont trust ETFs because there is a counter-party on the other side who I dont know and I, therefore, do not trust
I just need to say these things over and over about 5 times, then I actually need to hang up the phone.
My point... instos do not buy and sell gold. Central banks buy and sell gold. Bullion holders buy and sell gold. Mininers sell gold.
Now Skol, funny how when you dont like the opinioin of someone you just say 'they are dumb'. So if central banks buy (and they are buying a lot), you just say 'oh, they dont agree with me, therefore I declare them dumb'.
Skol, central banks were net sellers for decades I believe. But, my friend, THEY can see what is happening to currency. And THEY know, one day, people will say 'monopoly money backed by the US govt or any govt promise and good will..... aha ha ha ha ha'
Skol, these central banks know that to survive they will need to have some gold to replace the worthless money. That is why central banks are big time net BUYERS of gold for about 2 years now. They are not traders.
Instos... playing with fake paper IOUs for stuff they dont owwn and does not exist... I dont think that is a true reflection of the price.
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