A Retort to SocGen's Latest Gold Report - Sprott

``Somewhat surprisingly, it turns out that the collective central bank balance sheets have actually shrunk over the past three months -- by approximately US$415 billion. The biggest drop was seen in the ECB's balance sheet, which shrunk by the equivalent of US$370 billion, while other central banks also experienced small declines. Based on our simple model above, a decrease of US$415 billion should produce a gold price decline of roughly US$87/oz. And as it turns out, gold fell by US$76/oz over the first quarter of 2013. Does this sound like a bubble to you? It certainly doesn't appear to be. ''