WARNING: Gold is being turned into a 100% Synthetic Derivative

http://twoshortplanksunplugged.blogspot.com.au/2013/09/warning-gold-is-becoming-100-synthetic.html

This is without doubt my most important comment upon the Gold Space to date.

The completely obvious just struck me; given the cash settlement precedence on contract Gold, the ‘Gold Price’ and how it is being derived (driven), the depletion of Vaulted Gold available, and the leveraged re-hypothecation of Gold Bullion/Contracts, all forms of Gold other than Physical Bullion are rapidly becoming SYNTHETIC DERIVATIVES which merely points to the ‘Gold Price’, and not the 'PRICE OF GOLD'.

Gold is being removed as a ‘COMMODITY’ and ‘COMMODITY TRADE’ like Copper, Zinc, and even Silver, and becoming more like an MBS, CDS or ETF. It is being deliberately or accidently bifurcated into two asset classes, PURE DERIVATIVE and PURE BULLION.