Apparently those lower gold prices proved attractive to the BRICS.
Not all the economic theorems are utopian myths. Supply and Demand still works now and then.
There was a sea change in the international gold markets around 2005, as central banks became net buyers for the first time in over twenty years, and few even know about it.
Russia saw it's largest monthly purchase of gold in 15 years with 1.2 million ounces.
China's had its third largest flows of gold bullion from Shanghai at 68.4 tonnes after it's week long holiday. And there is a similar story for India.
Gold at these prices is steadily flowing from West to East. What is not sustainable will not be sustained. There will be a reckoning, and a revaluation.
It would be better for the world if the would be financial engineers and central planners allow it to be gradual, rather than precipitous. Otherwise the gold leasing window will some day be slammed shut, and gold will go into a highly disruptive backwardation. Then they will be carrying traders and even whole firms out on stretchers, along with the credibility and reputations of quite a few central bankers and politicians.
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