A new research paper about Gold yields some interesting conclusions:
We show that new mined supply is surprisingly unresponsive to prices. In addition, authoritative estimates suggest that about three quarters of the achievable world supply of gold has already been mined. On the demand side, we focus on the official gold holdings of many countries. If prominent emerging markets increase their gold holdings to average per capita or per GDP holdings of developed countries, the real price of gold may rise even further from today’s elevated levels.
Read the paper here.
If you enjoy the content at iBankCoin, please follow us on Twitter
Wow, thanks for this article, Woodshedder. It’s a pretty intriguing read. It’s kinda funny current day army captains are getting ripped off compared to Roman centurions (in terms of being paid in gold). Also an amazing challenge to the idea of gold as an inflation hedge for the lifespan of a typical investor.