The problem is people probably aren't paying for things in gold...

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HenryEmmett

322 Posts.

17/11/16

19:05

Post #: 20700038
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Originally posted by munchy ↑

anton007 wrote .Depending on gold price. Some analysts predict 850 soon, then MOY... better to sell now
But nobody knows the future price.

True, I remember when all the main stream media experts were saying gold was going to 800 at end of December 2015, I took that as a major buy signal, whoever heard of the msm getting anything right, the amount of panic they were trying to generate to sell had me buying Gold shares. I was buying MOY at 6 c not much later.

I would like to see a lot of so called experts screaming about Gold going to 800, which by the way would be completely impossible as almost every producer would go broke, last time I checked a drastic reduction in supply was very very good for Gold, price appreciation works two ways, increased demand or reduced supply.

I suspect we are going to see a major increase in demand from India, the disaster that banning their 500 and 1000 rupee notes is causing is astronomical, yes they are replacing with 2000 rupee notes, but considering how quickly and without any consultation this move was done, who will trust the government not to ban 2000 rupee notes at some point in the future if the economy turns bad and the Indian government wants to bail all the money into the banks. Remember Bail in legislation exists worldwide now including Australia. If I was in India I would only trust Gold. Half of India's people don't even have a bank account, Gold will be considered far safer to hold long term savings in than cash.

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The problem is people probably aren't paying for things in gold in India (e.g. how many specs of gold would they be handing over to pay for their groceries) and the half of India without bank accounts would struggle to afford a gram of gold. In other words India are probably a long way from abandoning their currency. I suspect central bank buys/sells probably pull a lot more weight when it comes to shifting the price?

Last edited by HenryEmmett: 17/11/16

MOY Price at posting: 27.5¢ Sentiment: None Disclosure: Not Held
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The problem is people probably aren't paying for things in gold...

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