"What do you think will happen to the price of gold when there are more sellers trying to cash in than there are sellers willing to buy?"
Why do you think people will not buy? Have they ever not bought?
I was reading - that with all the gold ever mined *there is 2/3 oz per person. If everyone in the *united states wanted to own 1 oz, it would take almost 4 years of total world production to meet the demand. *More steel is poured in one hour that all the gold ever mined.
Because I was refering to the situation described by you and others when people buy gold today as an insurance policy against severe economic difficulties, if not economic chaos, such as the hyper-deflation that occurred in Germany during the early 1930's. If the people, like yourself, who have already brought gold as an insurance policy start cashing in their stash with dealers and jewelers, as you have described, then the price for the gold is going to nose dive unless there are sufficient buyers to boost the price or at least keep it stable. But what makes you think there will be enough people during times of severe economic crisis who will have spare cash on hand to buy gold? If there are lots of sellers cashing in on their "gold insurance policy," but very few buyers, then the price of gold will head south.