Maybe one of you "older 'uns" could tell us all about the time when gold used to go up $50 and $80 on one day swings back in the good 'ole days of QE. Oh wait a minute - I remember those too, but it does all seem so long ago...back when the market acted a bit more 'logically'.
It seems they have suppressed the market to keep inflation expectations down and shake out longs. Things will probably get a bit worse before they get better, and now it seems that the rest of 2012 will just be more of the same suppression. Keep inflation expectations low, keep people from talking about gold over Christmas. Keep gold 'cheap' for those who care to buy because 2013 is going to be different.
There is a good article by 'Dave in Denver' that highlights the Basel 3 modifications and gold coming back into the monetary system. One key quote, for me, is
"If my analysis is correct, the price of gold will go higher from sheer demand/supply dynamics, but also because it will be in the entire global banking system's best interest from a balance sheet standpoint for the price of gold to move higher."
http://seekingalpha.com/article/1060301-the-price-of-gold-is-headed-much-higher-here-s-why
I do think this has to come to pass at some time but the most "pounce for the ounce" would come at a vastly rerated gold price. Also, the way for the fewest people to benefit from a repricing would be to do it very abruptly. Additionally, starting in January there will be lots of new money coming into the system. It seems that TPTB know what to do to suppress the excitment of previous QE rallies - one has to think there is a new way for people to express their disdain for QE that TPTB haven't thought of yet. Maybe it is just something so simple as the physical market - who knows.
Last year January started with a vicious attack on metals - maybe this year will be the reverse.
Again, maybe, just maybe...
Zipper.
