Does a Gold Supply Crisis Loom?
The half-truths continue when we come to the only other component of supply: "scrap sales."
Again, we have GFMS noting that scrap sales have plummeted, and then immediately implying that those sales will surge the moment that prices start rising. In fact, the truth is precisely opposite to what is being implied.
What we have seen over the past 10 years (and last five years in particular) is the transfer of vast amounts of the world's total gold stockpiles from "weak hands" to "strong hands." We see this inexorable trend on display around the world but perhaps epitomized best with the following two anecdotes.
In Portugal, we recently received a
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts