Sand Crab
Won't happen. At least not in the near future, and maybe for another decade.
There are currently agreements in place that limit Central Banks sales of gold to a max of 500 tons a year.
And with everything that has been happening in the world economics these days, the central governments are not selling their gold, in fact , for the most part they are buying gold to increase their reserves. Gold is the only currency that you can not print at will. The fiat currencies of all of the G20 nations are going to be in serious trouble within 10 years and those governments are waking up to the idea that having gold to balance off their reserves are a good thing.
Even Nixon, back in 74 realized this when he closed the window to exchanging ounces of gold for US Dollars to France. Gold has intrinsic value whereas the US/Euro/Ruble/ etc are only a percieved value based on their ability to pay their debts. Having gold is an insurance against a catastrophic economic collapse. Holding paper dollars is just that, paper.
I know that price of Gold will fluctuate as it has always done in the past, but I don't ever think that we'd see anything below 850.00 US per ounce for at least the next 10 years. For myself I will be lightening up a bit when we see 2,500 per ounce. If it does a major drop from there I'll buy it back and hold.
That's my take.
Ralph
