Friday, February 8, 2013

Gold price formation

What Is Key for the Price Formation of Gold?

Robert Blumen interviewed by Lars Schall of Gold Switzerland
Previously by Robert Blumen: Misunderstanding Gold Demand

In this exclusive interview for Matterhorn Asset Management, Robert Blumen discusses some important but widely misunderstood elements acting on the gold price. He explains that frequently cited gold demand statistics have no relationship to the gold price. In addition, he explains that the annual gold mine production is of very little influence, as gold is hoarded, not consumed like other commodities.


Gold is just one of the many assets whose price formation is ill-understood.
Blumen explains the problem for gold. 
A correct price analysis would come to the conclusion that gold is too cheap and bonds too expensive.

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