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.
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