Gold is a physical element in the hand, money and shares are promises of the amount represented only.
Not saying gold in value does not move up and down a lot in value, but no one can take it from you.
I used to trade shares a llot but retired now just take my pension and continue to stack silver coins as I go.
My experience a few years back in gold shares taught me that high percentage holders from banks were able to move the values up and down by sudden trades or by what are called drip trades. Bear in mind the minnows cannot be shorted. JPM for example often held between 20 and 30 percent of a stock and would often move huge percentages over a week.
So a lot of these companies have been closed till prices in gold rise higher and then we will find the big boys will control the show.
My vibe also is that it is the big boys pushing the paper price of gold whilst they accumulate physical at every opportunity. One clue is that scrap is being gathered up to the point it is now scarce. As a buyer of it myself for some time it is harder to get. Silver scrap for example is going to china big time.
So yes we have the paper trade and people making money from that, but the big one to come in my view will be when the supply of physical dries up and those holding will be the winners.
Just me vibe and thoughts on a Saturday. Time for a beer.
