One very important thing for people to consider concerning the gold market, and I have mentioned this before, is unlike corn or soybeans or oil gold does not get "used up".

When corn is "sold" it eventually goes into feed or food. When oil is "sold" it eventually gets changed into gas, Diesel and other products and gets consumed. So a "sale" of these products really means something. The product will soon be "gone forever".

But when main stream media trumpets everyone is getting out of gold because GLD is getting sold and inventories are getting smaller, they are simply misleading people. Everyone "can't" get out of gold. When gold is sold, it is not consumed. Which simply means ownership has changed. Someone else owns it. It does not go out into the "ether" of space and disappear till someone else comes along and wants to buy it. Well paper gold that does not really exist can, but real gold is always owned by someone.

So when the media says something like, no one wants to own the barbarous relic any more, that is pure BS. They either are ignorant or intentionally want to mislead. When gold sales happen it simply means there are new owners. And when small investors are flushed out of GLD, who are the new owners? Main stream media never seems to get around to asking that question.

If it is such a foolish thing to own gold and everybody is selling, who are the greater fools that are buying in large quantities? Maybe they are not so foolish after all. There are always two sides to a physical gold trade, and both sides can not be foolish in their purchase/sale.

So then the real question to be asked and answered by potential owners of gold, is which parties are the smart money, and which are the not so smart? That is the real question. Not the rubish that the media put out that infers that "everyone is getting out of gold". If everyone was getting rid of gold there must be a lot of it laying in the street or in trash cans. If anyone knows of any such gold, I would like to go dumpster diving so let me know.

But you knew this ehoff. So this explanation is for the benefit of those who might not have considered that gold is not like other commodities. The fact that it has a large stock to flow is what makes it a good money. Commodities like corn, wheat, and oil have a large flow compared to the stock so they would make a poor substitute for money.

A good question to always ask about the gold market is, who is the current owner, and why do they want to own it? Someone always owns real, physical, gold.

John