the plummeting pog

We need to answer a question first: why do people buy paper gold, or want to have an exposure to gold papers in their investment portfolios?

The answer is: to hedge against USD risk.

Investors buy paper gold to hedge against the risk of US dollar devaluation.

Gold, or its price as discovered by paper gold market, has not performed as expected.

As portfolio managers, as money managers, what do you do with a non-performing asset? You dump it.

So, the POG has dropped because investors have dumped their paper gold, they dunmped their paper gold because the paper gold has not been performing. Paper gold has not and can not perform because the supply of paper gold is unlimited.

Gold can not find the price that somewhat reflects its true value in this market.

For gold to perform, this paper gold market place has to be totally discredited. But when this paper gold market is discredited, the US dollar itself will probably be going down with it.

So, be patient.