There is plenty of fantasy and fudge involved in the gold price ATM IMO!
But this also extends to the financial sector and there subprimes, CDO's, Alt-A's, Debt-laden paper derivative lending practices. I'm sure many people in the know could have foreseen what would happen a few years down the track while they were lending a ton to "men-of-straw".
Logically gold should be performing well when you take into account the ridiculous lending practices that have taken place. Then again some might say cash is king. Not IMO!
Who holds the cash? Where does it come from? How much debt is yet to be written off by the majors and their lack of prudential lending? 500bill, 1Trill, 2Trill. Your guess is as good as mine
Ignore the smoke and mirrors! Gold should continue to hold up well compared to the chaos mentioned above IMHO
