JPMorgan analyst bullish on gold (part 2)

http://www.gata.org/files/JPMorganGoldReport-05-11-2010.pdf

GATA's comments:

That observation hints at why Western central banks and the International Monetary Fund backstop the London Bullion Market Association and the New York Commodities Exchange in their sales of unlimited and largely unbacked paper gold: so that the world may be deceived into thinking that the gold supply is a lot larger than it is, so the world is deprived of its traditional hedge against monetary debasement, and so potentially "unlimited" demand for gold can be met with unlimited supply of imaginary gold, thereby sustaining confidence in government currencies and the power of governments to inflate and reap the profits and power of the hidden tax of inflation.

See part 1.