GOLDBUGS AMEX Goldbugs Index (GOLD)

[sojourner]

Re: "GOLD could go a lot lower.."

All that is called GOLD doesn't glitter. To which GOLD do you refer: COMEX paper or physical real? There's a gaping difference.

In these days, it seems necessary to distinguish between COMEX paper gold and The People's physical gold market. Those buying and selling in physical market report persistence of prices north of $900/oz. As the COMEX, per Bob Chapman and other informed sources, does not cotton to major players taking physical delivery on large contracts, COMEX pricing has become increasingly hallucinatory. Indeed, Investor's Business Daily now calls the gold market "two-tiered."

How will this critical disequilibrium resolve? In 1979/80, well before COMEX gold ascended into stratosphere to final top US$850, The People were lining up in droves to sell physical gold. There often were lines around the block at the facilities of smelters, refiners, dealers etc. In retrospect, the People were dead-on correct in their assessment. COMEX market eventually resolved the gold price at a much lower price, as The People had accurately forecasted by their actions. Who knew better? COMEX or the ordinary people on those lines?

Nowadays, ordinary people are buying physical gold hand over fist, literally cleaning out The US Mint not to mention dealer and web-based inventories. Meanwhile, back at the COMEX, paper gold is plumbing the depths, dropping like a stone day after day. The People, it seems, have an entirely opposite view, and it seems more than likely that, once again, their actions will correctly forecast gold's future price before long.




























These are my opinions and sentiments only. Take them for what they're worth. Do your DD. Buying stocks is risky!

"If we could sell our experiences for what they cost us, we'd all be millionaires." -Abigail van Buren (a/k/a Dear Abby)