Friday, November 6, 2009

do central banks know where will the gold price go?

folks, there is a lot of discussion about the selling of 200 metric tonnes of IMF's gold to india's central bank this week and what does it mean for the gold market ...

well, i personally would NOT OVERVALUE the fact that a central bank sells/buys gold. why? they are soooo often WRONG on timing!

a) just think about the selling by the swiss central bank (and other european central banks) in the last 2 years ... ALL OF THEM WERE WRONG, as we know the gold price continued to climb up

b) let's laugh together about the BoE and its gold selling orgy in 2001 (?) triggered by gordon brown (that time secretary of finance in UK) => he or more precisely the UK citizens got the LOWEST POSSIBLE price for centuries ... it WAS the market bottom ... lol ... gordon brown's gold dip ...lol... ok folks, do not laugh too loud about gordon, maybe was his 'smart move' somehow motivated ... we do not know to whom he was obliged at that time and who's favor was that historical purchase at the soooo obvious bottom price ...

c) central banks do not sell their gold on me or my neighbor , so in the most cases when one central bank sells gold, so is an another central bank buying gold (e.g. IMF 2 india), just the corrupt mainstream media emphasize the selling side of the coin, of course, crazy gold bugs like me see just the other side ~ central banks are buying gold (india, russia, kazakchstan, petro-arabia, venezuela, sri lanka, china, ...)

d) the selling/buying of central banks is IMO triggered much more politicaly than triggered by some market fundamentals ...

=> do not waste too much time on central banks and their gold selling/buying motivation ... watch physical demand/supply instead ... the mine production is decreasing since few years (peak gold!), the demand is rising esp. the investing folks' demand through ETFs, coins, small bars ... and on top the central banks all over the world print sooooooo much new paper money that we will finally loose the last grain of confidence in it soon...
...
good-bye, you damned fraudulent fiat money system! welcome, next monetary reform on planet earth :-)

just my 2 golden cents :-)

btw, wherever the gold will go, GATA's newsletter will tell us first ...
(source: http://gata.org)
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