by Martin Creamer
Mining Weekly
JOHANNESBURG (miningweekly.com) – Confidence in the world order and the ability of governments to manipulate the value of fiat currency is seen to be diminishing, as is confidence in governments as credible sources of capital.
What the world does in such circumstances is buy gold but there may not be enough gold to buy because of a seemingly inadequate level of gold holdings.
[…] That is, a shortage of physical gold relative to the volume of gold derivatives, pledges and undertakings – or “paper” gold. (Also watch attached Creamer Media video).
In addition, the prospects of new gold production look bleak and the reluctance of some refineries to process scrap gold is increasing the risk of overreliance on recycled gold.