Oracle, Which brings us around to whether there will ever be a...

Oracle,

Which brings us around to whether there will ever be a dis-connect of any substance between paper Gold and real Gold, my opinion, 'I don't know' but I would not be betting on it, I suspect as the difference gets more and more stretched that paper Gold will be pulled back to reconcile with physical, but that rubber band could stretch a long way, at the moment paper Gold is winning.

( someone will no doubt pop in now and say there is no such disconnect and paper Gold simply reflects the market reality,) mmmm, always possible I suppose, it is a bit like the belief that everybody has that Gold can't do well in a high interest rate environment when in fact there are a lot of situations in the past when Gold has done extremely well in a high interest rate environment.

I suspect the FED cannot ease as well, but that may not stop them from trying, they are caught between a rock and a hard place, continual QE causes bubbles that they are losing control off, but stopping the QE will cause a treasury yield blowout....which is worse? so the FED is trying to convince the markets that there is no reason for yields to increase just because they are no longer pumping 85billion a month into the markets, I wish them luck, but the market is not buying it.

Expect more news from talking heads about how wonderful everything is as the FED tries to extricate itself.

Anyhow, I am supposed to be packing, got a plane to catch, so got to go.