Gold Fades From Investment Picture

DiggerUK

Gold has been tanking since September 2011.
Gold ETF's and warehouses have reported substantial outflows of gold. Goodly amounts of gold stored at the Bank of England have been withdrawn also.

Pressure from sellers has trended the price down, I believe it is for no other reason than QE and negative rates are 'working'. Which means many who parked funds in gold are liquidating to join the sugar rushing equities party.
This party is further boosted by those in europe who are feeling left out. After the ECB dropped it's rates to near zero, it seems that they also want to get round their rules which outlaw QE in europe.
I'm sure the banks will gladly offload any old rubbish that the ECB will take off their hands.

Gold's fall in my opinion is a fair way from over. But when it is over there will be tears.
..._

sabretoothtigger

Gold didnt tank at first, it just went to 1600 or so but China realised they are the main buyers and if they withdrew their purchases the price could fall further. If demand does not match then the price can do whatever, its upto people if its useful to them


I like this vid where he describes depressionary prices in gold while still being bullish http://www.youtube.com/watch?v=fVOmVbHtz1k
$800 an ounce is mentioned, I think its possible but I'd say thats an opportunity not a failure.
Thats flat over 5 years, any other investment can do that its remarkable we think gold is bad for doing the same

rise by 100%, gold would need to rise to $2,620 an ounce

Or dollars just need to decline. Watch trade balance, watch total dollars available I guess. All it needs is supply of one item to rise more slowly then another, for its price to rise relatively. Like dennis gartman says go long gold in ye, if they have negative trade balance then I guess thats right

doughnutmachine wrote: »

last time I looked gold was worth circa £20m a tonne. So this stockpile is worth £3,400,000,000,000.

China has 4 tn in foreign reserves from its exports. Would that suffice

Satoshi

M.Johnson wrote: »

For gold bullion prices to rise by 100%, gold would need to rise to $2,620 an ounce. Although I feel this is very achievable, it’s a price level we have yet to see. But the investible silver market is truly tiny because of all that industrial demand. In dollar terms, it’s only 4.5% of the size of the gold market.
So for silver prices to rise 100%, they would only have to move to $44 an ounce—a price level we already saw in 2011 and even more than that 33 years ago. And that’s exactly where I believe we are heading.


There are millions of tons of gold in play around the world not as rare as official numbers show, but silver is a lot more rare than gold.

There is a lot more gold in play than the reported 170K tons but I do not know about millions of tons. But yes there is less silver than is reported.