Sunday, June 12, 2016

There Is A Deepening Shortage 
Of Physical Gold
"According to the World Gold Council, the current investment allocation of world institutional portfolios to gold is a miniscule .55%. The flows resulting from a return of investment interest in gold for hedging purposes only, and in the best of all possible worlds (robust economic growth, world peace, etc.), would seem to have a potentially powerful impact on gold prices .. In addition to the dim prospects for increasing mine supply, the liquid inventories of physical gold vaulted in western financial centers (London, NY, and Switzerland) have been severely depleted by demand from Asian investors. The 'float' of easily accessed allocated physical gold has declined by approximately 67% since 2011. Much of the gold that has moved to Asia will not return to circulation in the absence of a sustained move higher. .. We believe that the stage is set for powerful new advance in gold prices…We believe that a decline in financial-market asset values is all that is needed to destroy whatever fragile confidence remains in paper currency and present-day financial conventions. Such a decline could come about for many reasons and at any time due to the buildup of systemic risk."
- John Hathaway
LINK HERE to the article

1 comment:

Anonymous said...

Wonder who finances them .... gold shorts ?