OPINION: there is no foundation for the drop in Gold prices.

Originally Posted by unknownk

There is more gold around now then there ever was in history.

That's an easy statement to back up, of course there is more gold now than ever before, there is more gold mined every year that adds to what has already been mined. But there are also far more, per capita, people now than ever before. And all wanting to have gold in some form.

I don't think I am getting my point across at all. Let me try again.

If we were to, just for the sake of arguing, remove recycled gold, and gold in central banks out of the equation, there is not enough gold being mined every year to supply the demand. That means we are far past "peak gold". People have to be discouraged from purchasing gold, and this is done just like it is with oil, by raising the prices. The oil companies don't raise gas prices because they are trying to squeeze as much profit as they can, the raise prices to discourage the use of gasoline because we are way past the point of being able to pump enough oil out of the ground at a fast enough rate to supply the worldwide demand. That's why during the summer you find high gas prices, when people drive for vacation, and during the winter lower, to encourage the purchase of gas because people travel less. Gold fluctuates for different reasons but similar ways, although it's a very delicate balancing act, it cannot be raised too much because it would through the retail products into a tailspin, it cannot be deflated too much because smart people would try to purchase huge quantities of real gold to hoard.

The unique thing about gold is that there has never been enough to supply the worldwide demand. Prices will always rise because there are always more people who wish to purchase gold, than there is gold. And the worldwide population keeps increasing. It's not really that difficult to understand.

On, and not all industrial or gold that goes into retail products is recycled. It's currently estimated by different sources to be only about 17%-22% recycled. Those are pretty fair numbers. Considering that industry uses more and more gold, and other precious metals every year than the year prior, it's obvious that industry is only supplied in a small part, by recycled gold.

Scott