Presently no concern that the financial system is going to fall apart
Fiat money is presently the king."We bought gold for two reasons - because we were worried about the inflationary impact of policy and because we thought the financial system was going to fall apart," Sean Corrigan, chief investment strategist at Diapason Commodities Management, said.
"Although it may be completely the wrong judgement, the market has decided that none of those at the moment is a concern."
Tell that to depositors in Europe who will be on the hook if their bank goes belly up. Both big drops in gold have come on the news of banks using depositors money to bail them out. Drive the price down, so they can move their money into gold, and out of the banks. Then watch as the banks fails, and no one is left to support it.