“… Gold jewelry market “close to dead” compared to a year earlier, and there is no real physical buying outside of investment demand… Jewelry buying typically accounts for around 60 percent of global gold demand.” (Reuters, September 18)
let’s talk about the COMEX gold market
they currently claim to have 9.248 million ounces of gold (not all of this is available for delivery) – at $1008/oz that is $9.3 billion dollars worth of gold
“In 2003, the U.S. Bond market is valued at over $20 trillion, which is $20,000,000,000,000. The measure of the money supply in U.S. banks is valued at about $8.8 trillion. The total paper money is $29 trillion.” http://silverstockreport.com/historyofmoney.htm
now let’s take a closer look at the quote from Reuters
“there is no real physical buying outside of investment demand”
the bond market is at least $20 trillion in size – how much “investment demand” has to move from a $20 trillion dollar market into a $9.3 billion dollar market before the $9.3 billion dollar market is affected?
the stock markets worldwide are $50 trillion is size – how much “investment demand” has to move from a $50 trillion market to a $9.3 billion market before the $9.3 billion market is affected?
in case you haven’t figured it out yet, the point I am making is this: the dollar value of the gold market is TRIVIAL in comparison to all of the other asset markets – it only takes a little “investment demand” shift into gold before the gold price is affected significantly
you don’t think $5000/oz gold is possible? how much of the $70 trillion in stocks and bonds has to shift into gold before $5000/oz is reached (and surpassed)?
the silver market is even more exciting – current silver stocks on the COMEX are less than $2 billion worth (not all deliverable) – that’s right, for $2 billion you can corner the silver market – how much money has to shift out of stocks and bonds before a $2 billion dollar market goes ballistic?
from Reuters again: “Jewelry buying typically accounts for around 60 percent of global gold demand”
how many of you would describe our current times as being “typical”?
