2. Gold does well during periods when there's a risk of high inflation. That clearly is no longer a big worry, given how much central banks have unsuccessfully tried to stoke even modest inflation.
"Inflation is NOT rising prices. It is the increase in the supply of money. The Fed is creating $85 billion a month. That's inflation on an unprecedented scale."
3. Now with the economy recovering, nobody wants to be in rocks that don't pay any dividends.
"Ah, what recovery? Is he talking US or Europe or world? Europe unemployment has hit new peaks. In the US graduates can't find any jobs. And can you believe government stats?"
4. Real interest rates are rising. That kills gold. Governments with debt issues are selling gold.
"Maybe all that thin air money is finally hitting the real economy, that you need higher returns to make up for losses due to inflation."
5. Gold was juiced by right-wing fanatics in the US. That boom is over.
"Hmmm, I didn't realize Central Banks were American and right wing fanatics to boot. How about those Indians, Chinese and Arabs buying gold?"
If gold does go to 1000 I will buy as much as Physical as I can lay my hands on.
Thank you. Someone who finally gets it.
What we are ignoring in all of this is, the control on prices has been, that production has moved from America, to China.
We are no longer the major exporter in the world.
China is. That continues to be the case, as China takes over ever more production, of OUR industry.
Now we are #2. And shrinking.
That is what everyone is completely ignoring. China is winning.
And both parties in America are helping.
Excellent post on every point.