Slate Grocery REIT T.SGR

RE:Hong Kong activity...

[TedOwens]

If demand for gold outstrips supply, there is a logical progression towards price reduction and not increase......... The reasons for this are lengthy in scope but in a nut shell, increased gold supply has the effect of increasing the amount of paper money which could be used against it as a global economic hedge thus driving down the price of the commodity..........On the flip side, reduced gold supply will have the opposite self valuation effect since there is now a finite amount of gold in which to apply against a set level of paper currency in circulation or could be put into circulation.........All in all, there would never be enough gold produced to meet the amount of global economic balance and as such, gold true long term intrinsic valuation would be impossible to exceed that offered by paper distribution volume's..........Increasing the amount of gold used to produce jewelry only compounds the problem as it is taking away a volume of potential cash backed commodity which now again only serves to reduce the backing against such paper currency limitations. Unless there is an amount of gold discovered which would be able to exceed the level of paper currency debt world wide, its valuation will never exceed what the gold bugs say it will over time...............