SGYour theory re plenty of Central banks ready to dump as a...

SG

Your theory re plenty of Central banks ready to dump as a negative to the gold market , with all due respect, is largely flawed. The 100 tons or so owned by Greece if it hit the market would be mopped up in no time.

Any European CB looking to sell will find a willing buyer in China for unlimited. The point is there are plenty of Asian CB's loaded to the gills with US treasuries - If the opportunity arose to divest into the gold market there would be several CB's queing up. FYI China's gold holdings as a percentage of its foreign reserves are approx only 1.5% - the US holds 8100 tons ( supposedly - no audit since the 1950's I think ) - as a percentage this is approx 70% of reserves.

If China were to increase its reserves significantly the gold price would rise to unimaginable multiples. Even China increasing reserves to Australian levels ( just over 8% of reserves ) would send the gold price to 5 figures in no time.