There has been established theory that POG has a positive correlation with the level of interest rates: higher gold price correlates with higher interest rates.
Assuming this is true, then higher POG means higher interest rates.
Now think about the humungous pile of interest rates based derivatives assets sitting on the banks balance sheet.
Please correct me but my memory says USD$700 trillion dollars of derivatives sitting on major US banks balance sheet.
POG to go up? that will cause too big a financial disaster.
A bit of fluctuation? yes. going back to $2000? No, it can't happen in this financial world.
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