The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / Macro Economic Trends and Risks


Subject:  Marc-to-Market: Ignore Gold Demand Date:  4/21/2013  8:21 PM
Author:  notehound Number:  421142 of 502661

In an essay from today entitled "Five Shocks Push Investors Off Balance," ??Marc Chandler, author of the Marc-to-Market web site, explains away the now well-documented disparity between the demand for GLD (paper gold) and the demand for physical bullion over the last week. The same piece includes some interesting analysis regarding other recent anomalies in the current market environment, but the following statement jumped out at me:


...the distinction between decline in paper claims on gold (futures and ETFs) and physical demand (gold bullion and coins) that some gold proponents have resorted to is not very helpful. It is similar to contending that the drop in the corn futures is somehow less significant because consumers are still buying corn on the cob or cornflakes... [Emphasis added.]

I don't know what other METAR readers think about the above statement, but I think it is at the very least disingenuous - and my initial reply to Chandler's cornflake analogy would be as follows:

"If grocery stores around the world rapidly were running out of corn on the cob and cornflakes due to sudden, intensified consumer demand which persisted for 5 consecutive days (with streams of shoppers queuing