The Gold bulls will talk up the usual “strong physical demand from Asia” story but the fact is that gold demand from Asia always picks up when prices fall lower as those buyers are price conscious. That however CANNOT MAKE UP for the LACK OF WESTERN-BASED INVESTMENT DEMAND which has plagued this market for a long, long time. The falling reported inventory in GLD is all the evidence one needs ( not to mention the abysmal showing of perhaps the worst sector of all time, namely the gold mining shares) to understand that is in the West, investors simply do not see any need to tie up excess capital in gold at this time.

The flattening yield curve, sinking commodity indices and lack of perceived inflation concerns, along with King Dollar returning, has made holding gold a losing proposition and thus it is going to take something else to shift Western sentiment towards the metal. All claims by the gold cult that the price is being “manipulated lower” are simply rubbish. It is going lower because the fundamentals do not support higher prices at this time.

While they console themselves with the foolish propaganda delivered by their various “gurus” and “prophets” about “standing firm in the midst of everyone else losing faith”, their net worth is declining even further. Having foolishly become “married” to this asset class, they are now at the point where divorce will cost them so much of what is left of their original net worth, most are now sadly reduced to holding on in the hope that somehow, someway, they can recover even a fraction of what they have lost by heeding the “false gospel of gold”.

I have nothing but sympathy for many of these “victims”. What I do not have sympathy for and instead feel nothing but disdain and contempt for, is those who misled them, many of whom have profited off of their misery by peddling them worthless rags of a newsletter and websites that make a mockery of the word, “analysis”. There was nothing remotely resembling “analysis” in those useless collections of drivel. What there was instead was a one-sided, completely SUBJECTIVE reading of a market which deliberately ignored the voice of the price charts and the opinion of the broader market. Elevating themselves above the collective judgment of the market, many of these self-appointed “gold gurus” uttered their pronouncements about the future direction of the price of gold as if they had descended from Mt. Olympus themselves for the sole purpose of blessing the uninformed and enlightening them. The raw and unabashed hubris of these is astonishing for its sheer brazenness. Like a biblical plague of locusts, they found a beautiful, lush Garden of Eden before them and left it a barren and desolate wilderness behind them.