It can create short term drops because news headlines always makes people have kneejerk reactions. Like another another member has pointed out, 300 tons is not as much as it seems.
300 tonnes is still a very significant amount. The total annual mine production of gold as of now is around 3,300 tonnes. So this Nazi gold represents more than one month output from all of the gold mines in the world. And another important point to note is that, before the discovery of this gold the Polish gold reserves amounted to just 102.9 tonnes.
Indeed, 300 tonnes is a large amount of gold.
But, since the FLOW of (physical) gold is eventually more relevant to price movement, my best guess is that the 300 tonnes will not affect the price much.
FLOW of gold also suggests that even a sharp drop in mine production would not affect prices much (read earlier (2009 on) posts of knowledgeable gold analyst FOFOA:
fofoa.blogspot.com (very long pieces!) for more details).
IMO (and FOFOA's), the big gold price moves up will be when people want GOLD, not the paper receipts of various kinds (the GLD, gold futures, gold lending, other derivatives). Price moves will
not be dramatic when the occasional 300 tonnes of gold are found in Poland or when some mines shut down or big gold discoveries are made.
It's when people "stand for delivery" that the shock waves will hit...
* * *
Here is Sudan suggesting that a recent "discovery" by a Russian miner of "46,000 tonnes" of gold ("worth $1.7 TRILLION") may not be as advertised:
http://www.sudantribune.com/spip.php?article56019That purported discovery did create some waves when first announced...
