There is no question except in the mind of the deranged bashers that the physical demand for gold threatened the fractional gold system to which a
Fed sponsored raid took place. What they are missing is that it is not price that threatens the fractional gold system but rather demand at any price. It does not matter if the demand for physical is at $1350 or $3500, it upsets the system.
What will happen now as gold bottoms due to Chinese and Russian physical demand, most likely at $1350? The gold price goes into recovery, margins rise on the futures market and we go directly back in the total inability to deliver, once more threatening the system. Physical gold premiums will continue to rise above even the physical market for gold.
The damage done by the gold banks in time will be seen to be damage to themselves and not to gold.
People are ...