The major brokers have put the fear into everyone that gold will be USD1000 or at least Credit Suise have a press release to that affect today.Clearly if that happens miners stop supplying.They are no doubt persuading holders of physical gold to sell to manage there supply problems.
So who wins and who is right we dont know this a new territory as the world has not faced times like this of unprecedented money printing.
I spoke to the CEO of an ASX200 mining company today he thinks there will be a physical supply problem but sees no major increase in price for some time,the bears have control.
Whilst the DOW and sp500 continue to rise gold is out of favour and the major players will make sure of that.I guess they make more money from peoples money on the stock market than people storeing wealth in gold.
Soros does not get in wrong often and he has increased his stocks of some gold shares and bought into the junior goldies index.His 20 year history is 20% return for his fund.Small change he has invested for him at this stage will be interesting to see what he does.
Short term I think its more of the same with minor fluctuations and maybe we settle 2013 with USD 1350 to USD1450 but who knows.
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