Thursday, July 10, 2014
WSJ monsoon coverage and what it means for gold
WSJ paywalled - lackluster monsoon rains trigger crop worries.
What is good about this is gold has gone up since the article, which means Wall Street Whitey (who reads WSJ) is buying despite fear of a monsoon failure in India (which would tank the gold price). Which means he's buying for White People reasons, not for supply & demand reasons.
What is bad about this is that any gold Whitey buys off the market, Whitey later sells back onto the market. Because gold is nothing but a roulette wheel for Whitey.
Any gold India buys, however, stays off the market thereafter. Or at least it has done for 2500 years.
So Whitey buying gold is not fundamentally bullish for gold. Not at all.