This could be the year that the mainstream investor finally pushes the gold market over the edge. While a fraction of investors continue to acquire a lot of physical gold, the mainstream investor is the key to driving the gold market and price going forward.
Why? Because the diehard precious metal investors don’t have the sort of leverage as do the mainstream investors, which account for 99% of the market. I have stated several times in articles and interviews that it will be the surge of gold buying by the mainstream investor that will finally overwhelm the gold market.
This next chart shows just how much leverage the mainstream investor has on the gold market. When the Dow Jones Index fell a lousy 2,000 points during the first quarter of 2016, mainstream investors flooded into Gold ETF’s & Funds. This continued into the second quarter, including the surge in buying after the BREXIT “Leave Vote” this past Friday:
According to the data put out by Nick Laird at Sharelynx.com, total transparent global gold holdings increased nearly 20 million oz (Moz) since the beginning of 2016. Nearly half of that figure, 9.7 Moz (supposedly) went into the GLD ETF. This is an amazing amount of gold as it represents 41% of total global mine supply.
For those investors who don’t trust the amount of gold backing these Gold ETF’s, I don’t either.
also:
Michael’s Shocking Stat show the amazing numbers of guns, ammo and body armor non- military bureaucrats are buying – Mind Blowing Gun Stats
