Monday, November 3, 2014

On gold's imminent collapse to $0

You know, I was chatting with a mailpal this AM and realized something.

In all the "gold goes to $0" analysis that I've been unable to avoid reading this weekend, nowhere does anyone actually develop their argument based on any supply/demand fundamentals.

Which I guess you'd expect, considering Wall Street Whitey has continually demonstrated that he has no clue that the gold price is dependent on supply and demand, not on real rates or inflation or US dollars or god knows what else they're on about.

It's especially pathetic when someone asserts a bearish call on gold based on TA. We all know how well TA works most times.

It's even sadder when they assert a bearish call based on a long-term cycle assumption that ignores the fact gold has only had a freely floating price since Nixon.

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