re: + + gold: the usd and gold supply + +
The Gold price can rise in 2 ways:
1. The current way: Link with USD.
2. Currencies are ignored but gold is sold solely on Demand/supply factors.
At the moment (2) is not active but if supply can be cut back more or if inflation increases in a meaningful way, then I can see it happen after a short time of adjustment, say at $525-$550/ounce. (I did mention those number previously.
Hence my reference to the proposed Barclays ETF which is supposed to remove real gold from the market.
That may not be enough but as demand picks up more then the amount of gold in circulation becomes less and the propensity for higher prices will become more obvious.
That is the main reason why I suggested in the previous post that the chance for a solid correction at the moment will require a lot of effort and I listed 10 reasons why that is so.
See what develops,
Gerry
NCM Price at posting:
0.0¢ Sentiment: None Disclosure: Held
