bert

Buy Signals are Popping Up in Gold and Silver

By your own reasoning gold should be at $5,600 today (If it worked in ratio to currency devaluation and other commodoties prices), but it doesn't as is obviously the case! Therefore the price of gold depends mostly on psychology especially if it is going to get so expensive that it won't be used for jewelry. Nothing is to stop the Fed and or the Chinese from shorting gold at key moments. (Maybe the Chinese could buy gold or maybe they don't want to see it as a currency to challenge their Yuan.) I believe that central banks undermine gold by making it move the same as the markets causing it to lose its safe haven status. The Fed can manipulate psychology and since there is nothing more than that to sustain the price there can be no assumption that prices will increase. (I am long gold)