In my discussions with other investors about the great inflation-deflation debate, I always point out the elephant in the room that seems to be invisible to everyone else. Namely, who exactly bought the thousands of tons of gold that the central banks sold off at ridiculously low prices in the 1990′s and through 2003?
And why is it that nobody ever talks about the identity of the buyer or buyers? Indeed, as far as I know, I am the only one who ever asks the question. Given the years that have passed and the events that have taken place since those huge and probably fateful purchases, it seems obvious that the buyer has an extraordinarily long term investment horizon and is supremely confident of the outcome of his investment.
If we knew the identity of the buyer, we would probably know a great deal more about the probable course of this rally in the precious metals. Given the utility and value of that inside information, I am more than amazed that the identity of that buyer is still shrouded in mystery.
But the video below gets the actionable advice exactly right for the individual investor.
You see, gold soars independent of the whole inflation-deflation argument. Gold is about power and control – not inflation or deflation.
Corrections are engineered to shake loose supply. /Caveat vendor/