Gold; it's value by its holders is derived by....speculation

Discussion in 'Gold' started by mmissinglink, Jun 12, 2013.

  1. mmissinglink

    mmissinglink Active Member

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    mmissinglink, Jun 12, 2013
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  2. hiho

    hiho Active Member Silver Stacker

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    hes onto it, the entire market is made up of speculating central banks :rolleyes:
     
    hiho, Jun 12, 2013
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  3. trew

    trew Active Member Silver Stacker

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    He is absolutely right

    Plus his disclosure at the top of the article that he is short GLD means he would really like the price to go down
     
    trew, Jun 12, 2013
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  4. G-Log

    G-Log Member

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    It's time to hark back to the Ron Paul/Bernanke face-off in congress July 2011.

    [youtube]http://www.youtube.com/watch?v=OghDOApA-1k[/youtube]

    Roughly paraphrased Bernanke says:

    Gold is a precious metal, an asset, not money.
    The price of Gold reflects many things--global uncertainties--people hold Gold as protection against tail risk (hedging)
    Central Banks hold Gold as a form of reserves. They hold Gold (as opposed to holding Diamonds) because of tradition.

    Tim lordanov's assessment that "gold is held almost exclusively for the purposes of speculation" is incorrect. In my view it is only those trading gold futures contracts ex. Comex that are doing this and distorting the real market value of physical gold.
     
    G-Log, Jun 13, 2013
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