Volatility. Expect more in the future.

To properly address the issue would require a rather long post documenting the past several thousand years of using precious metals as a system of settling trade agreements. Everytime I start to respond I find myself going off on one of many possible tangents.

And I'm busy looking for the stuff, currently helping a firm with reclaiming old mine tailings, which are now ore grade deposits just sitting there, so I can't dedicate the time to a lengthy response.

There is much weirdness in the gold market: huge short positions, fractional reserve gold leasing, derivatives, hedging, and demand for physical delivery... There are many financial schemes that are stressed to the point of un-ravelling, and it concerns me.

An elevated gold price keeps me employed. A price that is rising too fast tells me something is going really wrong. Correction is good at this point to bring the curve back down to the long term moving average.

The ten year chart: