Thank you for you comments. They deserve a serious answer.
1. I think that it is a mistake to assume that all governments and their central banks behave the same way. They don't. 2. I don't share your confidence in the governments currently buying gold. All of them are run by fools or crooks. 3. I am not bearish on gold. Some might assume that I am because I point out that many of the reasons for buying gold offered on the Gold Forum are nonsense. But that doesn't mean there aren't good reasons for buying gold. 4. You notice that I rarely come out in support of Skol. Like most of the Gold Bugs, he is guilty of "cherry picking" evidence that proves his particular view rather than balancing all the evidence to produce a logical position. Biased as they are, his contributions have a value as a counterweight to the endless crap coming the other way. 5. In my own portfolio, I am running less cash now than I have since 2006. I am in two minds about gold at the moment. I think it will rise in price, but I have been buying other assets that I think have less risk, and are likely to produce greater returns. If I buy gold it will only be in derivative form where there is greater leverage, better liquidity and cleaner exposure to the USD denominated market.
