J P

Gold: Heading for a Trainwreck Due to Oversupply?

You're assuming that central banks have not been selling any gold between 2004 and 2006, while talking about possible changes to the agreement whiereby central banks sell gold! The "percentage of assets" is an irrelevant figure, because its measured in fiat currency. The questions is, how many ounces do they have.

The reality is, you do not know. The statistics you are counting on count both physical gold and "gold notes" that is, gold that has been sold already, or "leased". Its not real gold, and thus it cannot be sold onto the market without creating an equal demand to find the gold (on the open market) to satisfy the note.

Please visit gata.org for a thurough investigation of the state of gold in central bank vaults.

The name of the game is-- sell gold short so that inflation does not look as bad. You've fallen for their propaganda, masquarading as statistics.