Gold has been in a bear market for three years. Technical analysts are asking themselves whether they should call an end to this slump on the basis of the "triple-bottom" recently made at $1180/oz, or if they should be wary of a coming downside break beneath that level. The purpose of this article is to look at the drivers of the gold price and explain why today's market value is badly reflective of gold's true worth.
First, I think a reminder would be timely. Those who seek to trade gold are at substantial disadvantage:
- they line themselves up against too-big-to-fail banks which have the implicit backing of the taxpayer to bail them out of their trading positions;
- furthermore markets have become so manipulated and dangerous that gold should be considered as insurance against systemic risk instead of a punt.
No comments:
Post a Comment