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Do You Know What Determines the Price of Gold?

- Robert Blumen -

This is a long read but well worth the effort and I found it very interesting.

My thoughts are these.
1)Gold is an asset, a money and above all an insurance. It is an insurance against the obvious failings and amoral practices of central bankers and politicians.
2) As all gold that has ever been mined is basically still in existence and is added to by new mining, there is never a shortage of supply per se. So in fact there is an oversupply unlike other commodities which run short due to various reasons.
3) The oversupply of gold makes the "price " irrelevant in this sense------What I could buy for $100 AUD in 1966 was a hell of a lot more than I could get of the same material today.
4) Some humans have the innate sense that gold has value and will not sell into a money market
5) The number of those sensible humans is steadily growing and as such the supply of gold to the money market will dry up completely.
6) I have no idea when that will occur but it is likely to be longer than a lot of people/experts think. Either way, the ramifications will be huge.
7) Get gold while you still can.

Commented 4087 days ago

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Beginning of the headline :In this exclusive interview for Matterhorn Asset Management, Robert Blumen discusses some important but widely misunderstood elements acting on the gold price. He explains that frequently cited gold demand statistics have no relationship to the gold price... Read More

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