AuGod!

Gold: Four Reasons to Expect September Gains

As Chuck Butler put it: "Imagine if you will for a moment, where the price of Gold would be today, if those Central Banks hadn't dumped Gold on the markets for the last 9 years? The fact that Gold has risen from $250 to $950, in the face of these Central Bank sales is amazing! And now... The amount the Central Banks can dump on the markets each year is smaller... What do you think that means for the price of Gold? I know what I think it means!"

Well today (September 2, 2009 2:08PM EST) Gold Spot is - bid/ask 976.30 - 977.30 which means - well you can do the math. Yesterday it was around USD 950 oz. What I am reading from Adrian's article, is that this could go up or down depending on "hot money" and not the usual flux fundamentals due to India's buying season etc, the latter notably down over previous years. That "driver" from investments is a dynamic which portends high volatility. So watch your timing. All obvious I know.

I am long gold bullion so a day's ride up or down is of no real consequence except delaying a purchase of bullion until the smoke settles a bit.