And in the meantime, those that bought in think the gold price would be at $2,000 are going to be sitting on a big loss- still waiting to make a motza from the supposed leg up.
The reality is that their is demand for physical gold by retail investors and central banks- but institutional investors drive the price through derivatives. So basically the price is reflective of an artificial market. And what really makes it worse is that they actually set the trend for the market as well. Goldman Sachs came out Thursday and said gold was going back to $1,450. So, because Goldman said this- the gold price is falling to that level. Who cares if there isn't even a sound basis for this? They basically set the trend in motion.
As retail investors- this is a market we all shouldn't be playing because the cards are stacked in the favour of the instos who control the market. They are operating the casino and cannot lose.
The right thing is to sit on the side lines as this thing plays out- and buy back in when it is clear the price has bottomed. When that happens I will be buying physical gold with the confidence I can hold it for the long term- because in the long term there will be inflation with the way central banks are printing money.
People forget Goldman was saying Gold would be above $2,000 when the trend was in that direction.
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