Gold Supply-Demand Bullish vis-a-vis Central Banks

[mamboni]

Take a look at this diagram:

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/shirakawa/Gold%20FT.JPG

Points:

1. Central bank gold holdings have plateaued at all time lows as percent of total reserves.
2. Central banks were big sellers of gold in the 1990s and up to 2009, ostensibly to suppress the gold price
3. Gold rose 4-fold in price over the last 10 years despite the head wind of CB gold sales (dumping)
4. CBs are now net buyers of gold (they have ostensibly capitulated to gold)

Add to this the massive imminent QE2 (multi-trillion dollar FED monetization) and accelerating soveriegn fiat currency devaluations (exhibit A: recent BOJ yen-dollar intervention).

Conclusion: Gold is set for a bull run for the ages. Buying gold today as appreciating investment makes shooting fish in the barrel look risky. Gold is going to the moon - and silver may just lead the way!

Tally ho!

[Horn]

http://www.zealllc.com/c2004/Zeal090304A.gif

This chart from 2004 is still cool to look at, Just gotta squint & to get the full illusion. :D

http://www.zealllc.com/2004/au3stage.htm

[mamboni]

http://www.zealllc.com/c2004/Zeal090304A.gif

This chart from 2004 is still cool to look at, Just gotta squint & to get the full illusion. :D

http://www.zealllc.com/2004/au3stage.htm


We're now somewhere in phase 2. Phase 3 will commence within a year in my opinion. And there will not be a Volcker or the option to jack up interest rates to 20% and snuff the gold-silver speculative price explosion.

[Horn]

http://www.zealllc.com/c2004/Zeal090304A.gif

This chart from 2004 is still cool to look at, Just gotta squint & to get the full illusion. :D

http://www.zealllc.com/2004/au3stage.htm


We're now somewhere in phase 2. Phase 3 will commence within a year in my opinion. And there will not be a Volcker or the option to jack up interest rates to 20% and snuff the gold-silver speculative price explosion.


With that line of thinking, you'll need a fleet of armed mafioso to swap out a 1/4oz. at the coin shop.

I'm sorry, is that extreme thinking?

http://www.youtube.com/watch?v=2sK3-6fvGoE

[Ponce]

No matter the price Americans are broke and unable to buy gold......the future bull market for gold will come from the outside...........like I said long ago "Gold will go up once the people start to buy gold and take the power away from the coat and ties controlling the market, but of course the new power will come from the overseas people because Americans are now to broke to do any good"............if anything those so called "survivalist" with a few pm coins are now selling them in order to survive and will have none for the real survivalist games to come.

[Gknowmx]

http://www.zealllc.com/c2004/Zeal090304A.gif

This chart from 2004 is still cool to look at, Just gotta squint & to get the full illusion. :D

http://www.zealllc.com/2004/au3stage.htm


We're now somewhere in phase 2. Phase 3 will commence within a year in my opinion. And there will not be a Volcker or the option to jack up interest rates to 20% and snuff the gold-silver speculative price explosion.


What is your take on FOFOA's latest peice? It would seem to compress the phase transitions significantly.

[mick silver]

No matter the price Americans are broke and unable to buy gold......the future bull market for gold will come from the outside...........like I said long ago "Gold will go up once the people start to buy gold and take the power away from the coat and ties controlling the market, but of course the new power will come from the overseas people because Americans are now to broke to do any good"............if anything those so called "survivalist" with a few pm coins are now selling them in order to survive and will have none for the real survivalist games to come.
and the ones with money still here in the good old usa still think paper is king

[mamboni]

http://www.zealllc.com/c2004/Zeal090304A.gif

This chart from 2004 is still cool to look at, Just gotta squint & to get the full illusion. :D

http://www.zealllc.com/2004/au3stage.htm


We're now somewhere in phase 2. Phase 3 will commence within a year in my opinion. And there will not be a Volcker or the option to jack up interest rates to 20% and snuff the gold-silver speculative price explosion.


With that line of thinking, you'll need a fleet of armed mafioso to swap out a 1/4oz. at the coin shop.

I'm sorry, is that extreme thinking?

http://www.youtube.com/watch?v=2sK3-6fvGoE








Armed mafioso? Oh right, that's the IRS agents! ;D ;D ;D

[mamboni]

http://www.zealllc.com/c2004/Zeal090304A.gif

This chart from 2004 is still cool to look at, Just gotta squint & to get the full illusion. :D

http://www.zealllc.com/2004/au3stage.htm


We're now somewhere in phase 2. Phase 3 will commence within a year in my opinion. And there will not be a Volcker or the option to jack up interest rates to 20% and snuff the gold-silver speculative price explosion.


What is your take on FOFOA's latest peice? It would seem to compress the phase transitions significantly.


FOFOA's latest is brilliant and insightful as always. FOFOA is saying that the paper and physical gold markets are bifurcating and in time you will not be able to obtain physical at any price. The paper price might correct down but this will have nothing to do with the physical price which must go much higher as dictated by the degree of fiat money creation to date and into the future. He points out that gold is unique amongst the precious metal and decidedly not a commodity: it is trading as a currecny now. As opposed to other 'commodities' as gold's price increases it's supply actually decreases - it become scarce. This is unique to gold. And unlike cotton, sugar and other commodities, gold supply cannot increase in response to price. To wit: gold price has quadrupled since 2001 while mine supply peaked [in 2001].