A guest on BNN was asked about gold, gold mining shares and related products.  He suggested his firm was "bullish" on gold...and when asked about the price of gold...he answered...."who knows what the price of gold is?"

In other words Gold is heavily manipulated...."but real"  The price of gold...will rise.  So many paper instruments related gold contracts exist on many levels.  COMEX sets the price of gold and this is mostly ( 400 oz. paper to 1 oz. ) paper contracts issued between parties that don't ever want to take delivery....so the ratio goes up and down like a brides pyjamas and makes it easy for the synthetic markets to go down in a market where Gold should be stable or rising.

I look at the Shanghai Gold index and Delivery's....Gold never leaves China...it is being accumulated....10's of thousands of Kilograms on a daily basis.

See for yourself:

http://www.en.sge.com.cn/data_DailyReport

As for where it's going...?

When Bitcoin and other non asset backed cyber currencies get high enough ...people will convert to something real.  

When stocks rise continuosly and performance/dividends can't be maintained...people will convert to something real.  

Why?

"Because gold is honest money it is disliked by dishonest men" R Paul

Remember, Central Banks can print all the money they want.  Gold is a currency tyhat has no Central Bank....so Central Banks create paper synthetic markets to ensure the price is suppressed!

The Chinese know Gold and they know it's on sale.  My persoanl belief is the suppression of the market is to allow legitimate gold stocks and related gold stocks...to fall so large hands can pull them in.   Switching all other values into tight hands...so they can stop the synthetic market and make a killing when gold soars. 

Don't let them shake you out of the tree's !

This is the wave...and I believe this to be true of oil / gold / silver /and some other metals.

I have time...

You bring the shovel...I'll bring the lime.

Till next 

Captain Time