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How do you know that it isn't?

Because the people who hold the derivatives would cash in as soon as possible under your scenario.

If the POG stays at these levels for a couple of weeks, you are going to see a bunch of other financial problem coming to the surface.

Your ilk has been saying this for years.

Just be happy that we are finally being set free and that the fiat dollar is going into the toilet where it belongs.

Well, if you're right about that claim, your gold holdings will do you no good. You can't eat it, and you can at least use worthless Federal Reserve notes as toilet paper.

"Because the people who hold the derivatives would cash in as soon as possible under your scenario."

And how, exactly, would that happen?

There are more (short) derivatives on gold than all the gold mines in the world produce in 7 years. Where are the shorts going to buy gold without raising the price to the stratosphere? Your understanding of what is happening seems to be lacking...

Because the people who hold the derivatives would cash in as soon as possible under your scenario.

Remember Enron? It's heads they win, tails you lose. If they lose, they hide the loses in off-balance sheet transactions. If those blow up, the counterparties take a bath. JPM and Citi are already in the hole on Enron's natural gas derivatives. They tried to pawn the loss off on the insurance companies but have failed in court. Eventually, the taxpayer will be on the hook. That's the "you lose" part.

Also look up Ashanti and Cambior. It's happened in the gold market before.

Well, if you're right about that claim, your gold holdings will do you no good. You can't eat it, and you can at least use worthless Federal Reserve notes as toilet paper.

I also store two year's worth of food and toilet paper, so no problem there :-)

Seriously, we don't need to see Argentina happen here to have a good trade in gold. And gold holdings do pay off in a rising gold market. Harmony yields 2.6% and has doubled in the last year.