In the increasingly likely event that fiat currencies will lose all function as money, measured in them the gold price will trend to infinity. It is now difficult to see how the dollar can avoid this outcome, or something close to it. That being the case, in this context a price move for gold above $2000 per ounce is an insignificant event, except for those trapped with short positions, which brings us to the chaos on the Comex futures market. Figure 2 shows the position in US gold futures markets on 28 July (the last Commitment of Traders information available) with the spread positions removed.
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I am not trying to encourage anyone to buy precious metals. I am trying to educate people about the impending collapse of fiat currencies. For those who have put their wealth into paper gold, I suggest you get what money you can before those contracts become worthless.
David DeGerolamo
