Markets are manipulated up and down by a variety of actors to make money. In retrospect common sense dictates that a basic commodity like crude oil does not lose half its value in a few months due to supply and demand. Demand hasn't suddenly halved and supply hasn't suddenly doubled. Something else was supporting that high price a few months ago. If it wasn't speculation, I'm open to other explanations.
Some gold advocates theorize that the TBTF banks are short physical and paper gold. Plus, since they are TBTF they can drive the paper market wherever they want it to go.
Others don't really care and look on such periods as these as buying opportunities.
Why not?
Demand hasn't suddenly halved and supply hasn't suddenly doubled.
Psychological factors aren't involved in demand? Supply isn't just supply today, but also expected supply in the future. Demand isn't just demand today, but expected demand in the future.
A 10% increase in supply doesn't mean a 10% drop in price.
Some gold advocates theorize that the TBTF banks are short physical and paper gold.
Why would they be? Why wouldn't they be long gold?
Plus, since they are TBTF they can drive the paper market wherever they want it to go.
The same way they could drive housing higher, so we'd never have a crash in 2008?