Don’t get me wrong, I’m not criticizing you (I own some gold as well). But I’m also worried about the gold market overall.
On the one hand, it’s odd to see both supply and demand so high, especially with the fact that NOBODY can actually say how much there is; I can do research and in a couple seconds figure out how many shares of outstanding stock there are in a XZY Corp. and it’s easy to verify that a stock certificate is legitimate, but that is impossible with gold. It’s entirely possible that a lot of the gold that has been bought the past few years is nothing more than worthless paper.
On the other hand, look at diamonds, it is an accepted fact that the supply of gem-quality diamonds FAR EXCEEDS what is in circulation. But it’s controlled by a cartel and they have a vested interest in keeping supply down, because demand is fairly predictable. But what if demand for diamonds were to skyrocket in a short period and they just decided to flood the market at the highest prices ever? The diamond cartel could effectively cash out and people would own a lot of beautiful diamond jewelry that was now worth a fraction of what they paid for it. What if world supplies of gold are 50 or a 100 times what people believe and a consortium has been hording it for a century or more? What happens then?
Or what happens if someone discovers a huge new supply of gold somewhere? Or develops a better way of mining that makes it easy to extract gold from mines that were otherwise abandoned as unprofitable (especially since if the price goes up, those unprofitable mines can be profitable again).
I would tend to doubt anybody could keep a huge supply of gold secret. They haven't really kept the diamond supply secret, they simply have an iron fist on everybody who could possibly get to the raw diamonds, and I'd hate to be the person who tried to break that embargo.
What if world supplies of gold are 50 or a 100 times what people believe and a consortium has been hording it for a century or more?