Thinking about this Elliot Wave Maniac who has calculated that the price of gold will be going down 25%, the following crossed my mind.

Since 2 weeks we know that, on average, there have been 100 buyers of real physical gold for each seller of real physical gold during the entire history of gold trading. The other 99 sellers sold paper gold (basically during the last 40 years).

Imagine now that 99% of past buyers (or their heirs) are about to discover they paid for the stuff, believed they owned it, but don't own it. These 99 out of 100 will start a desperate battle to get physical, first from the bank they believed was "holding" their gold and once they see the long lines of lawyers, they will try to get physical gold somewhere else and setlle for cash with their "custodian" (in that order I hope).

So in the gold rush that will follow not only many new buyers want real gold, but in theory also 99% of the past buyers want real gold.

Difficult to see how the gold price can go down from here on.

DCFM