From Zerohedge
By Dan Flynn and Joe Yasinski of GBI
''In our first installment of this series
we explored the concept of stock to flow in the gold markets being the
key driver of supply/demand dynamics, and ultimately its price. To
briefly summarize the STF concept, the “stock” of existing gold
is the total amount ever mined and the “flow” is the amount of physical
gold available for purchase on any given day. Obviously the more flow,
the more for sale and presumably, the lower the price. Today we
are going to explore the paper markets and, importantly, to what degree
they distort upwardly the “flow” of the physical gold market.''
read more
http://www.bullioninternational.com/blog/entry/paper_gold_what_is_it_really_good_for
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