Trigger Mike Posted August 3, 2011 Share Posted August 3, 2011 CNBC says gold is at $1,665 and that central banks are buying. WHY are they buying when they are broke and borrowing everywhere? Why are they buying at 1665 when they were selling at 250 an ounce? They should be selling at 1665, and paying down their debt. Are they planning on buying enough gold to voer their debt and go to the gold standard again? How are they paying for it since they have to borrow all the time? How will borrowing to buy a commodity like gold that will eventually fall in price help them and how could it be a good investment if you have to borrow to get it? Link to comment Share on other sites More sharing options...
Curley Cole, SASS #56849 Posted August 3, 2011 Share Posted August 3, 2011 Gold charts I don't know why they are buying the gold, but I am not too sure about gold falling anytime soon. Look at the link abouve and look at the 10 year chart. Gold has gone from about $200/oz to almost hitting $1675 today and almost never dipped to a prior low. I only wish I had bought more when cheap. curley Link to comment Share on other sites More sharing options...
Cascade Charlie, SASS # 48668L Posted August 3, 2011 Share Posted August 3, 2011 There's the crux of the whole thing...Maybe 1675 IS CHEAP....go figure...or speculate...or go broke...who knows? Link to comment Share on other sites More sharing options...
Trigger Mike Posted August 3, 2011 Author Share Posted August 3, 2011 Gold charts I don't know why they are buying the gold, but I am not too sure about gold falling anytime soon. Look at the link abouve and look at the 10 year chart. Gold has gone from about $200/oz to almost hitting $1675 today and almost never dipped to a prior low. I only wish I had bought more when cheap. curley gravity. It was 840 an ounce during jimmy carter (when adjusted for inflation that equals 1800 an ounce in today's money). It does not make sense for gold to be that high with no economic growth, thus no inflation. Link to comment Share on other sites More sharing options...
Marshal Mo Hare, SASS #45984 Posted August 13, 2011 Share Posted August 13, 2011 I saw this data last week. The gold supply is around 39,000 tons a year. Mining contributes 25 to 28000 tons, the rest comes from people selling jewelry and investors selling. Manufacturing uses 3,000 tons per year. The rest is being bought by investors, speculators and central banks. The hoarded surplus is growing at several thousand tons per year. When (if) the price of gold starts dropping the quantity that can hit the market and drive prices down is enormous. Link to comment Share on other sites More sharing options...
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