Is there such a thing as a gold supply? After all, it is not consumed. It is not eaten or burnt. The only thing that gold supply can do after all is grow. And that is it. But there is a factor the can decrease the presence of the gold in the market – jewelry possession. How many of us have bought a ring, a bracelet, a necklace and have never worn it? Or didn’t really wear it for months at a time? Usage like that simply takes that amount of gold off the market.
And demand for the metal is not going down with this, that is why gold is always in high demand – countries have the golden reserve in the form of bars, there are also people who prefer their gold in a solid form like that. Isn’t that sweet?
That is why there isn’t really such a thing as a stockpile of gold, that can really influence the price, but the fact that people do not really trade physical gold that often can really jump the power.