bonjour,

Certains seront peut être intéresser de lire ceci (en anglais) :


http://jessescrossroadscafe.blogspot.co ... ns-of.html


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Also the thing about gold price is that it is diluted via leveraged cash-settled ETFs which have survived for this long only because gold has become more of a speculative trade since 2008 [maybe 2007], and less of a investment. Since hedge funds who buy GLD, SLV etc etc are not interested into taking delivery and are more than happy to settle in cash due to reasons you surely must know. ETF is like a bank; it only has access to X% of deposits, and loans out the rest; the same is with ETFs, if there is an increase of only 5% in wanting delivery instead of cash gold goes up 20% since GLD needs to go out and buy said gold which it does not own [i suspect they will soon change contract variables so that it will became cash-settled-only ETF which would have the same pricing technique as it does now; that should do the trick] and due to 100:1 leverage employed. Hence if only physical gold was to be traded i suspect fair price with current currency weakness is in the area of 50000-100000 dollars. Yes you read that right. What they did with gold is the same trick that was done with the dollar; they printed it and artificially lowered its value.
The problem for GLD is that in order for it to function, and to be able to keep gold down, it needs to maintain a constant distribution of ratios between cash-settled contract termination vs. delivery taken. If said equilibrium is distorted either by disbelief in the dollar or increase in delivery taken, the game is over.

If you take the notional value of all dollar denominated gold trading instruments and divided it by inventory of physical gold i suspect you would get a leverage which is much higher than 100:1.

Of course this plays no role for the markets themselves, and yes Schiff is going agains the flow and will probably get burned; but he is right; and he even understated golds fair value.

What you said about China is spot on, and I agree with you on your assessment of ECB. The FED will sacrifice ECB Because preventing dollar deflation is more important than preventing EUR deflation.
http://www.zerohedge.com/article/rick-s ... cnbc-video