RE:New Zero Bound Only Game In Town Wasn't it just late 2011, three years ago, when gold was selling at $1,900 an ounce and almost every advisory on the planet was bullish on gold?
What's happened since then?
Well, the economic recovery has failed, if we take out the fake numbers. The number of people who have left the workforce is at levels not seen for 30 years. There is food and medical inflation, but few talk about it, and there has been a massive transfer of wealth from the middle class to the elites.
Europe and Japan have collapsed and ditto for Argentina and Venezuela. We have a potential world war in Ukraine and ISIS has taken back Iraq. It seems the U.S. president has recently preferred Iran over the Saudis, which jeopardizes the petro-dollar. Russia and China are taking active, ongoing steps to bypass the greenback, and Ebola is loose.
Against all this unpleasant backdrop, gold bullion is down almost 40% and sentiment is at depths never before seen.
And despite all the talk about 'gold manipulation,' the fact is that no sane trader wants to invest in a commodity that 'mysteriously' gets beaten up every single time a reversal seems close."
But in the end, all manipulations, all imbalances, all extremes face regression to the mean.