The eBay Index and the true value of gold
Ned
Managing Editor Jeff Clark of BIG GOLD wrote in the
November 2008 newsletter:
"Many dealers are out of 1-oz. coins, and not just here in
the U.S. Londoners have been queuing up in front of coin
shops; German suppliers are refusing new orders; demand
exceeds mint capabilities in Canada, Australia, and South
Africa; and Switzerland is working around the clock. If
you’re fortunate enough to locate a source of coins, expect
to pay an unusually high premium over the price of spot
gold -- in the U.S. perhaps 10%, 15%, or more -- triple the
normal level. Even then you may have to wait eight weeks or
longer for delivery."
According to the laws of supply and demand, shouldn’t the
spot price have skyrocketed?
Whatever the reason that it didn’t – hypotheses bounced
around on the Internet ranged from deleveraging to
governmental price manipulation – the BIG GOLD editors
managed to find an unexpected indicator of the true value
of gold that seems to be more reliable than the spot gold
market itself…
The eBay Index...
Continued: http://atu.ca/f616