if the largest gold supplier sold out, their demand would not change anything much, they just wait and wait for the next supply it would somehow push up the secondary market, but for buyer; why would they push up the price for the items they are buying, its not paper market.
I think investors and speculators are driving gold's price up (for a good reason), but the masses are still numb and dumb. If you merely scan the purchase habits of people around you. They buy up countless useless items that they don't need. Ecommerce is thriving, useless services and products are being sold more than ever before. Don't buy a thing you don't need!
I was talking to a wealthy extended family member about how they could consider buying some precious metals, they are totally uninterested. He said "we're not going to waste money on something like that" while standing on a $6k rug in the lounge room of their multi million dollar house. lol. Each to their own, but it's going to be hard not to stick my tongue out at them and say ner ner when all is said and done.
About 18 months ago I was chatting to a mate who is no dill, finance professional, comfortable lifestyle etc about PM's. He was polite and listened and did nothing. I sent him (last night) gold and silver charts for the last 12 months and the chart that was posted here are global bank price projections for gold. No tangible response rec'd. I think I'd have more luck selling Amway sometimes.
Too many people are like that. Too many. And even those who have little knowledge believe "buying gold" means buying a few gold necklaces and have no knowledge about investment gold. Some don't like silver, because they consider it "too cheap", so "let's buy gold instead". Then try to explain them that it's actually the more volatile silver that could bring better returns. What worse is that people are spending their money on the latest iPhones, cliche-vacations for the rich in Bali, new 3D sound systems every 3 years, they lease new expensive cars (which will dip in value the next day they brought them out of the showroom), they pay for useless degrees and expensive education, the buy X-box and Playstation consoles, they hold on to a bunch of useless old possessions that they will never use, waste money on going to expensive bars and restaurants (and never do a cheap grill party in their yard)... As Peter Schiff once said: "what is this, the Twilight Zone?"
What will happen to snob greedy fashion-fed companies during a crisis? Like Apple. iPhones will be useless in a terrible crisis. Let alone, people won't be able to afford them.
I've detected budding interest on "investment forums" in the past three months. I'd say these represent about 3-5% of your average retail joes (not sophisticated investors). They're discussing where to buy their first gold from and what is the acceptable spread on bullion 5-10g bars. Silver gets practically no mention. That still leaves out pretty much 95%++ of the entire population. That said, it seems Bullion Now and GoldStackers are flat out busy with clients so...
mind you, the banks usually got their forecast wrong many times over we can see higher prices may be in 6 weeks to less than 6 months
Have a look at some of the larger Aust bullion dealers (not inc Perth Mint). Many have some gold bars and coins listed as "out of stock" or "pre sale". Yep demand is building as gauged by what I've heard from some bullion dealers.
My daughter has done Economics HAHA and watched gold going up but still refuses to buy even 1oz as they thought her its a relic and a wast. I have to just laugh as there is no way to make her look at the system with a open mind, the uni is smarter than me.
I think we can reach 2,000 $ gold by next year if this keeps on going. I'm amazed we reached 1,500 $ so fast. Back in 2011-2012 many cheered for each 50 $ that it went up. Gosh, I can't believe it was in the 1,200's just a short while ago. ...nostalgia...
Technically your are wrong and correct, as in 2011 the $1800 we still are not there if you take into account that the AUD has lost 43c in the $ thats why you need to refer to the USD to see it in real terms.
