by Stewart Thomson, Gold Seek:
1. I prefer the “KIS” motto to the more common “KISS”. I define it as, “Keep It Simple”. Simply put, gold bullion is the ultimate asset, but when the price declines, Western investors often become nervous.
2. Some investors try to mitigate their worry, by reviewing factors that make gold the “queen of assets”. That helps, but I think a simple focus on gold demand versus supply is all that is required to own gold without worry.
3. In 2009 – 2010, the fear trade (the Western super-crisis) created massive and consistent demand for gold. Institutional investors literally flocked into gold ETFs.
4. That demand became so huge that it started to equal Indian and Chinese gold jewellery demand. In turn, that caused global demand to overwhelm mine and scrap supply, driving the gold price relentlessly higher until 2011.
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