In India, everyone I know only buys gold. No one sells them. Glitter of gold is always invigorating to the average Indian female. From my pea brain, I also know that women from Asian countries such as Indonesia, Malasia, Philipines and African countries such as South Africa, Kenya and Zimbabwe are also gold crazy.
Governments, banks and even some huge organizations hoard gold assuming gold is a safe haven. What do they even do with that? they just spend on a huge security system and an strong vault which would keep the value locked in it. What happens if gold price falls a bit - they still hold it.
More than women and governments, there are these ETFs which buy gold on behalf of many investors (investors are both people and organizations). This is the category which really manipulates the price of gold. The ease which with you can buy or sell ETFs make this crazy market even crazier.
So, when I sit back and read that Marc Faber expects prices to go down to $1500 or even lower to $1100, I am angered at the ETF investor who has both been pumping in money when gold was lower and sell when gold was higher.
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