GREY:KXLAF - Post by User
Comment by
silver300on Aug 03, 2011 12:23pm
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Post# 18899249
RE: Demand for physical gold bullion
RE: Demand for physical gold bullionWhy do you conclude that an increase in demand will create an urgency for gold producers to produce more gold?
I say leave the gold in the ground until a fair price can be received. To me a fair price on this date would be at least $10,000/oz based on the U.S. adjusted monetary base and the number of ounces of gold supposedly in Fort Knox.
But the U.S. adjusted monetary base continues to climb and the 261,500,000 oz of gold are probably not in Fort Knox, or at least not all unencumbered so I am conservative with my $10,000/oz gold. But if gold were at that price today I would be in favour of gold producers starting to sell gold. Otherwise, KEEP THE GOLD (and silver) IN THE GROUND!
Why bail out the shorts by selling a finite and valuable asset at a TREMENDOUS discount?