Gold's pricing dynamics differ from those of typical commodities like oil, as it is accumulated rather than consumed. Nearly all gold mined is stored in vaults, reserves, or as jewelry, with new production contributing minimally to overall stock. Goldman Sachs analysts emphasize that gold's market operates by shifts in ownership based on the willingness of buyers, with two notable groups: conviction buyers, who purchase regardless of price, and opportunistic buyers, who enter the market at favorable prices. This ownership-driven model mirrors the real estate dynamics seen in Manhattan.
You can't pump gold - but you can bid it out of someone's hands. Gold doesn't get used - it changes hands and gets repriced.
The gold price reflects who is more willing to hold it and who's willing to let go.
Its market clears through changes in ownership, not production-versus-use balances.
What matters is the identity of the buyer and their willingness to own, just like in the Manhattan real estate market.
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