USD 2000 will come sooner or later and has several reasons. Too many to list but you should never forget who is setting the spot price, traders and not producers.
They adjust PoG according to the strength of the US Dollar which shouldn't be the case as gold is, apart of being an industrial metal, a currency and a financial back up system. If all banks would comply with the back up rules PpoG would be at estimated USD 7000 due to the lack of physical gold. About 90 % of all commodities traded are "paper commodities". Best example wheat: 95 % of 2011 worldwide traded wheat contracts were "paper wheat".
The "Investment Cowboys" in London and NY determine the prices mostly unrelated to the real supply / demand situation. They use any news, positive or negative, to speculate and use the herd's fear and greed to their advantage. If all commodities traded needed to be physical and to be delivered before sold to the next person then prices would be shooting through the roof.
Sources : various website articles
- just google and you'll find those information
buyers?, page-8
-
- There are more pages in this discussion • 25 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)