You have the dopiest of reasons dreamed up as to why gold should go lower, and yet they work. And all the intelligent reasons why it should go up, they don’t work. That’s just the way markets are. I already talked about how stupid JGBs are.
So if you understand that markets can be completely maniacal for long periods, gold is just another example of one. It’s got all the reasons in the world why it ought to go wild and yet it can’t. At some point it will and we will probably look at whatever the catalyst is and say, ‘Are you kidding me? That’s what made it go up.’ And then gold will get on a run and when it’s going up people (in the mainstream media) will make up reasons why they need to own it, just like they make up reasons for gold to go down.
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