An interesting statGot to wondering how much of an affect on the price of gold is created by gold backed ETFs.
Some back of the envelope calculations lead me to believe that it is a heck of a lot bigger than is being let on.
A lot of the talk is about central bank buying etc.
Just for comparison, the U.S. has about 8,000 tons in its vaults. Next in line is Germany w/ 3k.
Guess what's tied up in ETFs alone. About 3k also.
That's just one category of private investment. There's a lot of physical gold being stored away by private individuals. How much is anyones guess. Then there is gold backed crypto.
Seems to me that private investment in gold is more responsible for the gold price than is realized.
This is just in our market. Add in the rest of the world, and I can't figure out they keep the price relatively suppressed.