Isn't this what we said about gold the whole time?Submitted by George Strait on Thu, 04/18/2013 - 16:07
DP folks have been predicting a paper gold crash, and the primacy of holding physical gold.
This is what's happening.
Paper gold will drag down physical gold, but only so far. When the gap gets too large, they will decouple, as people realize that they are totally unrelated.
What we're seeing now is physical purchasing off the charts, and ETF outflows. Right now its impacting the price of physical somewhat, but spot prices and physical prices are increasingly unrelated.
This is how paper gold will crash, by decoupling from physical.