"The fundamentals are such that we feel gold is trading at what appears to us to be an almost 80% discount to its intrinsic value based on past monetary inflation. This does not even include potential future monetary inflation that we anticipate, but past monetary inflation.
"With that as a backdrop we are not going to be, frankly, too bothered if the price of gold drops $100, $200, $300 or even $400 an ounce. Again, we would see that as a washout. As you mentioned, there is a significant central bank bid for gold specifically. Therefore, any down trade is probably the result of balance sheet liquidations or near term sentiment turning the other way, and we see that as weak hands...." - Paul Brodsky