DON'T TRADE GOLD.

JUst had a thought on gold and gold buyers.
In the past during a gold bull, most buyers are ETFs and retail.
But gold is traded across the spectrum. ie gold is moved across the sellers and buyers.

This time round, something fundamental about the buyers have changed.
And that is, Central Banks have come as big buyers into the picture in a big way this time.
And the thing is this: Central Banks do not trade their gold buys normally, especially the big buyers like China, Poland, Russsia,etc.
THEY DO NOT SELL THEIR GOLD BOUGHT. THESE GOLD GOES INTO THEIR TREASURY AND IS NEVER SEEN AGAIN.
This means that physical gold is being mopped off liquidity from the market by these banks.
So, if we see that the supply from the miners is in deficit of these huge buying, we may see gold increase incessantly for the near future.
Caveat is if the Central Banks stop buying.

Just my thoughts.

If you looked at my slogan, it says "Long gold since 2002"

Gold trivia

In 1999 and 2002, then-Chancellor of the Exchequer Gordon Brown ordered the Bank of England to sell about half of the UK's gold reserves, raising £3.5 billion at an average price of $275 per ounce. The decision was made to diversify the UK's reserves, and it has since been widely criticized as a major financial blunder because the price of gold has since risen dramatically, costing the UK billions in lost potential value.

The decision: In 1999, Gordon Brown announced the sale of over half of the UK's gold reserves, a move that surprised the market.

The sale: The Bank of England, acting on behalf of the Treasury, sold 395 tonnes of gold between 1999 and 2002.

The price: The gold was sold at an average price of $275 per ounce, which was at a historical low at the time.

The cost: At today's prices, the gold reserves sold would be worth significantly more, and the decision is considered one of the worst investment decisions in British economic history.

The motivation: The sale was intended to diversify the UK's reserves away from gold and into foreign currencies like the U.S. Dollar and the Euro, which were expected to generate better returns.

The consequence: While the sale raised £3.5 billion, the UK has missed out on trillions of pounds in value due to the subsequent surge in the price of gold.

i am very olde. 98:2

When physical is in short supply, the spread/premiums against spot goes up higher. Nice!

Billions of pounds I guess.

Look at my signature quote.