An important observation on gold prices lately. There is little resistance to the market price increasing on low volume. When it gets too high it is immediately bought low and back into the range of lower prices. When gold sells off on low volume, there is little resistance to the movemnt, but when it gets too low it's immediately bought back higher to the range it left. Logically, there is a reason that gold is being made to hang about at this level and I woud say that there is unfinished business somewhere that is waiting to be concluded to determine the real price it should be.
The world's largest holder of gold reserves is the USA with about 8133.5 tons of the total available gold resreves globally. When only one country holds that much power, then the world is at USA's mercy. What gold wants, gold gets. http://www.businessinsider.com/count...ited-states-10. China doesn't even have a quarter of that. USA had about 20663 tonnes 60 years ago. The top 10 countries only hold a combined amount of 21.4525 kilotonnes. More than half of that is missing from USA. So where did the other 12,529.5 tonnes go? Usa has sold of about 208.825 tonnes annually for 60 years, meaning that the remaining amount will last them another 39 years tops.
My bet says they will sell off a lot to drop the price, announce the taper and then buy a load of gold in foregin reserves to top up the paper reserves again and watch as gold rockets in price so they can continue their tactics and keep a strong reserve currency to avoid letting China win and still manage debt wothout priniting much more money. $800 is possible in this scenario, before next presidential elections. Wonder if that's going to happen?
The world's largest holder of gold reserves is the USA with about 8133.5 tons of the total available gold resreves globally. When only one country holds that much power, then the world is at USA's mercy. What gold wants, gold gets. http://www.businessinsider.com/count...ited-states-10. China doesn't even have a quarter of that. USA had about 20663 tonnes 60 years ago. The top 10 countries only hold a combined amount of 21.4525 kilotonnes. More than half of that is missing from USA. So where did the other 12,529.5 tonnes go? Usa has sold of about 208.825 tonnes annually for 60 years, meaning that the remaining amount will last them another 39 years tops.
My bet says they will sell off a lot to drop the price, announce the taper and then buy a load of gold in foregin reserves to top up the paper reserves again and watch as gold rockets in price so they can continue their tactics and keep a strong reserve currency to avoid letting China win and still manage debt wothout priniting much more money. $800 is possible in this scenario, before next presidential elections. Wonder if that's going to happen?
You win, you lose. All else is history. The future does not exist.
