Gold pricingIn a recent discussion with a precious metals broker, the following points came up that may have potential for reasonable consideration.
His take:
The G7 nations will not allow the POG to skyrocket like we saw in the early 80's. Part of the reason (maybe all of the reason) behind the high prices in the 80's was the Americans need to pay off foreign debt with physical gold. They then helped drive up the POG so as to offset the amount required to service their debt. Odds are the rest of the G7 will not allow a repeat of such an action but will rather control the POG in such a way so as to benefit all of the G7 countries collectively. His prediction was we will not see the POG go beyond $ 340/oz (max) with fluctuations around $ 20/oz (min)
This is just a theory and nothing more but.....who controls the words printed by the "analysts". Where do the "analysts' get their information and just how reliable is the information that has been chosen to be given?
Are we ultimately at the mercy of the G7's control on the price of gold? Can this be a reasonable assumption? The current POG is being driven by and large by the "cooking of the corporate books" in other markets. Is this the beginning that was needed to kick start the precious metals market?
One mans misfortune produces another mans fortune?
R