Gonzalo evidently had some sort of accident and hadn’t been posting articles for awhile. He’s back in the saddle. I wish him well.
Monday, January 21, 2013
Why Isn’t Gold Higher?
Hint: Because it’s the Credit Default Swap of the Next Financial Crisis
Why isn’t gold higher? Two of the three reserve currencies of the world—the dollar and the yen—are on a relentless race to the bottom, and only recently have the Europeans figured out that they’d better start kicking the euro down, before they price themselves out of the global markets.
With this general fiat currency devaluation, you would think that gold would be much-much higher than it is now.
But gold isn’t higher—it’s drifting. Consider this chart of gold, over the last decade:
eugend66 says:
Hehe, Gonzo is back, so you all Behave … .
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22nd January 2013 at 8:30 am
bluestem says:
Paper is paper, the real stuff is the real stuff, purchase coins for your self , your children, or your grandchildren and sleep well at night. Don’t go nuts , just be wise purchaser. John
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22nd January 2013 at 10:23 am
Eddie says:
Another way of saying what GATA and others have said. Metals are manipulated by banks and governments colluding to keep the currency from falling to far, too fast.
The Fed is still the Fed…an 800 pound gorilla that can cause markets to move in any direction…at least for a while.
It does appear that the demand for physical is starting to cause a disconnect between spot price and the price of bullion. But not enough yet to cause any cracks in the foundation of the futures markets. I think we would see widening spreads between spot price and coin and other bullion prices if something big were about to change. That’ll be the tell.
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22nd January 2013 at 11:00 am
AKAnon says:
Glad I didn’t pony up $300 to be a Gonzo subscriber (like that was going to happen).
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22nd January 2013 at 11:47 pm