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An I.M.F. Announcement on the Completion of Gold Sales due Soon by Julian D. W. Phillips

An I.M.F. Announcement on the Completion of Gold Sales due Soon by Julian D. W. Phillips : "All from the head of the World Bank down are also aware of the useful role that gold can play in acting as a ‘value reference point’.   Should this happen gold will have returned to the world of money in real terms, albeit  in a slightly different role to the one it had in the past.   We termed this in earlier issues of the Gold Forecaster as gold no longer being a ‘means of exchange’, but as a ‘measure of value’.... What happens to demand with a 400 tonne drop in supply? A 400 tonne drop in supply in a balanced market will pressure the demand side to find more gold. · With mine supply pretty inelastic there will be only a small additional flow from that source. · With jewelry demand in the developed world back to former levels, only much higher prices will deter them. · With industrial demand [particularly electronics] now a necessity, demand is unlikely...