"Although I can not prove my following statement, it would appear that, as months and years now go by, that gold is becoming more of a "currency", more of a monetary instrument antithetical to the USD and other fiat currencies, rather than just a "commodity". This transition, a basic change in its perception by the market, is by definition quite gradual, and can seen most clearly by the reminder that straight fundamental analysis of supply/demand characteristics no longer are that valuable in forecasting this market. The gold market price is being set, more and more, by the speculative/investment crowd, rather than the actual producers and consumers of this commodity. Gold now moves more and more in line with other financial price movements, negatively correlated to the USD, and less in line with its inherent fundamentals. This perceptional change is critical to support the ongoing bull market, as ground floor investment interest must emerge, in size, to offset the deteriorating basic fundamentals of this market."
safehaven.com |
