Bugs, don't get it: what the governments did to bitcoin, they're about to do to gold if it peaks its nose out from under the rubble. Get ready for your gold to become illegal. I had a Krugerrand I couldn't sell for a decade. It can and will happen.
Okay, so the Fed expanded its balance sheet 1 trillion dollars in the past year and gold fell over 30%. So now that the Fed is preparing to stop growing its balance sheet and eventually reduce it, what is the bull case? Come on, gold bugs, enlighten me with your genius.
Do you understand that the market is not worried about it? If it were a real problem, the price of gold would be much higher. They know that the COMEX will find the gold it needs or do a cash settlement. AND THEY DON'T CARE BECAUSE EITHER WAY THEY MAKE THEIR MONEY!
The ratio of traded gold to COMEX gold is more like 60:1. But I agree with you: all the default talk is nonsense. The market knows everything that happens at the COMEX and everywhere else affecting gold and the price keeps going down. Nobody who matters is concerned about this because there's nothing to it. It's just another misguided goldbug investment thesis.
Give it a rest. Goldbugs had their chance in 2011-2013 to prove that QE would lead to inflation and higher gold. Well, guess what? It never happened, and with QE ending, it never will. Gold peaked at $1900 and we are only in Year 3 of another 20-year bear market for gold.
I told you the report would be good. Rates would rise and gold would sell-off. Fed is ending QE and gold DID NOTHING! That is going to continue. Gold will not bottom until $900! Class dismissed.
You're right. It is non-existent. And it's going stay that away for another 20 years until we're out of this deflationary bust. So get used to $900 gold, because the barbarous relic is only in Year 3 of a 20 year bear market.
Do you realize that the flow to stocks ratio of gold is like 50:1? The miners could stop mining completely and the market wouldn't even notice.
Gold is the WORST performing asset in the world. Even natural gas is heading up. Fed money printing was supposed to send gold to the moon. Well, the opposite happened, and now with a strong employment report tomorrow, the taper will be on and gold will be heading right back into the dumpster where it belongs. Gold bugs get it wrong again. Gold going down and staying down. And all this talk of COMEX default is pure nonsense. Gold will be $900 by Q1. Bet on it! I am. :)