increased demand for gold, page-5

bb

With respect you seem to run hot and cold. At times your posts seem rational and at others irrational.

Instead of being so critical and asking the question 'Why is gold low?' etc etc why don't you give reasons why you think gold is low and then we can discuss it.

To reluctantly answer your question, and I'm happy for people to add to this, first we are seeing forced liquidity (fear and de-leveraging) by US citizens from overseas investments. These dollars are being repatriated back to the US which is forcing the USD to rise. There is also a carry trade component to this. Gold is also being liquidated to meet margin call and by hedge funds etc. This coupled with the increase in the USD is forcing the gold price to decrease. Paper gold trades are probably not helping as well.

Unfortunately we have to wait until this all plays out and we see the last seller go through. When this happens, well how long is a piece of string? However, when it does occur then the USD will start trading back on fundamentals of the US economy and the world should be awash with the worlds reserve currency causing a significant inflationary environment. People will want to trade in their dollars for physical assets.

Their is plenty of info out their on the matter and it behoves all of us to make sure we are across all the issues. Having said that I have been accumulating precious metals and will top up on EXM at these prices.

Cheers
BW