Even though I said I would not reply you have once again goaded me into anger.
GumbyLearner deserves to be called out on his propaganda spreading junk. You also.
He could not explain the net short positions by the big instos in gold if he ever even tried. Just seeing them net short on the COMEX is enough for him to cry conspiracy.
What happened to the COMEX busting in December? Never happened did it.
Despite the fact that the gold price has been rising against this net short position for almost a decade (which completely invalidates his and your conspiracy theory), it also completely ignores the fact that just like other forms of money (of which gold is one) it must be lent out to make a profit. The same way central banks lease their money, they lease gold. Of course they will be net short! This is the job of the dealer! Do you think the bank makes money by leaving their cash in accounts? No! They loan it out! Just like gold!
Otherwise the natural rate of debasement for gold is 2% per annum, roughly the same as a basket of world currencies today. Also remember, international central bank holdings in gold is roughly 13% of total reserves and holdings, just like most portfolios should have! So these currencies are 13% backed by gold price!
He also claims quantitative easing as another reason gold will go up, but he cannot explain this measure at all or the mechanisms behind it or why any of this has any relation to gold whatsoever. This unchecked and willful ignorance sickens me. How can you claim quantitative easing will cause gold price to go up when every word you spout shows you don't even know what quantitative easing is or how it works.
I think the funniest thing of all is that all of you crazies are happy enough to rant against the banks and how they will all fall over and everything but you've still got a brokerage account with one or the other of them, probably long a bunch of gold miners which you expect to cash in for fiat at a huge profit.
i.e. you apparently detest fiat and the banks, but are happy to hold trading accounts and fiat backed shares on a fiat market with the goal of playing this market for a fiat profit. You say there is nowhere safe to put your money but gold explod, yet I know you hold or held gold mining shares since September. This is a blatant hypocrisy.
Just look at this quote
I can name several contrarian and Austrian school analysts who picked the downturn (correct), forecast deflation (correct), forecast USD increase (correct), forecast gold increase (correct), went short financials (correct).
But I won't. You have to go back and look through my posts if you want to see this as I have spent countless hours researching and linking to spoon-feed you like children while you post links to silly youtube nuts. Why should I contribute to your willful ignorance any further?
Instead you follow the nutter camp who claimed hyperinflation (incorrect), USD collapse (incorrect), commodities boom (incorrect), oil boom (incorrect) and only got two right: gold increase and short financials. What a joke.
So you can see just how gold has saved the nuts from themselves. You yourself claimed gold was rallying against market collapse but there is no proof of this since 1007 gold as I have challenged in my last above post. Gold has been selling off with the broader market with rapidly declining open interest.
If you are all so sure of hyperinflation, you should be short treasuries, not long gold! But not one of you has the guts to do this even though if your claims were only halfway correct you would be as rich as a Saudi oil prince by now.
The least funny thing is that I have repeatedly said all this before to GumbyLearner, he just ignored me and spouted more of the same crap which simply does not hold water. None of the mods care because they are so used to seeing irrational junk being spouted on this thread by the goldbugs.
This is the only thread on ASF where people can talk baseless trash and get away with it.
EDIT: Oh one more bone to pick.
explod you say you will be holding onto your physical because it will be impossible to get more once you sell it (or pay a "ridiculous" premium). Yeah right! How long have you even been buying gold? I have been a long term buyer (since I was as young as 5 I have held gold because of my heritage) and many of the "rational goldbugs" aka Austrian school traders I speak have been buying gold since it was 200 or less. This is the same premium as it was last year and all the years before that.
I can walk into Aus Bullion and buy an ounce of minted 999 gold coin or bar on the spot without filling out any forms or anything. The premium is 14% for 1oz and decreases as your purchase size increases. If you buy a 5oz bar the premium is less again and less again for a 10oz bar, etcetera.
There is no shortage in physical gold, just a production bottleneck for the increased demand in small denominations. 400oz LBMA bars are in fluid availability all over the world. You can take delivery on COMEX or CBOT bars just like any other commodity, but it will be in 400oz bars.