If Bretton Woods 2 occurs, the short answer is “no.” First, the central banks still have a great deal of gold, despite their sales. Second, the weaker banks may buy gold. But what is the supply elasticity? If many people believe that inflation will be lower and that the future price of gold need not rise much, they will be more willing to sell now. There are some large stores of privately held gold and it might flow back to the central banks. (They sold at lower price and the speculators bought it at $260 and on up. The speculators … Continue reading Will central bank gold buying drive the price up?