Gold Stocks Rally as Gold Breaks 1000 - Stock Market Update

[DillonX]

Last time gold went over $1000 for a while, people in India & Russian & other places started rushing down to take advantage of that opportunity to unload their gold jewelry at that price.

Is there any reason I shouldn't believe this won't happen again?

[sarjil]

because people selling in india is not too relevant to gold price.

[DillonX]

sarjil - how can you say that ppl selling gold in India is not relevant to gold prices?

India has always been a country where people loved gold jewelry & especially gave gold at wedding ceremonies, so the country could always be counted on to be a big importer of gold.BUT when gold went over $1000 India actually became a net exporter as people rushed to cash in on the opportunity... to the surprise of many in the gold industry who always thought they could count on India being a big importer

[CarryANationIII]

because the major demand for gold is monetary not jewelry, the jewelry demand is minimal, so even very high jewelry demand (or supply) is dwarfed by monetary demand.

[DillonX]

Carry - why in the world would you think that jewelry demand is a minor factor?

Most gold mined in the world is used for jewelry.

We have about 200 countries in the world & they all now use fiat currency - none of them back their currency with gold.

I think you must be getting your info from a gold seller.

[CarryANationIII]

Well I guess that depends on how you define "jewelry" and "monetary" In India most "jewelry" is "monetary jewelry" because Indian men use their wives as banks so I count that as "monetary"

The decade long boom in gold prices is due to monetary demand, hedging against inflation/devalued fiat, not because people wanted more pretty jewelry. When Indians start selling their gold, they are getting amazing prices because there is so much monetary/hedging demand. Since all the fiat is being inflated

[sarjil]

lol "because Indian men use their wives as banks" lol. Wish that was true then i would have jumped to marry the indian Girl-Bank my folks would choose for me. the reason indian women wear jewelry is the same reason western women show their skin to everyone(a lot more whorish IMHO), it is to attract attention, show their status. With indian women either you get 100% Mom type, or high maintainance bitch who will actually kill your real Bank account. IMHO. Agree with you on Gold.

[CarryANationIII]

Indian couples save their money by buying gold in the form of jewelry that the wife wears. It's not that complicated.

[sarjil]

i meant that india does not have as effect on gold as people think(and it's mostly temporary). The price of gold is itself is moving becuz of people's future monetary perception, and indians merely play on that signal to their benefits. another reason too is if you look at percentage of gold traded at comex, indians dont have that much gold. 3rd in the big picture, gold movement is driven by monetary conditions, fear, and higher tendency for people to park their money in something safe.

[SuperEndorphin]

Great Video