<David, <<perhaps there is more to the story?>> Yes there is, the people that bought forward need to preserve price as long as they can>
IMO the net non-longterm position in gold is 'short' not long [ie. by non-producers, and non-users of the metal]. So it's the other way around... shorts are likely to try and hold the price down. Luckily the shorts are U.S. dollar players or they'd be getting KILLED as gold SOARS in most non-dollar terms as I stated before.
<That's the problem with a "useless" commodity (useless in terms of application), price needs to be regulated, supply and demand isn't relevant.>
Disagree again... supply and demand still drives the gold market, otherwise why would you bring up all the CB supply? And speaking of 'useless' commodities, assets, whatever.. what about the dollar? Why is IT so strong? People burning it?
No, the dollar is irrationally in demand at this point in time, and vs gold and many other currencies this too shall reverse IMO. Buy gold, sell dollars.
DAK |
