This is the presentation that Singapore-based fund manager Grant Williams, Of Things That May You Go Hhhmm, gave at Mines & Money in London in early December laying out why he believes the gold price is languishing despite a wealth of what would ordinarily be positive catalysts.
He says that currently, outside those who focus on precious metals, there is an enormous amount of apathy but, he suspects, that apathy will shortly turn to enthusiasm – an enthusiasm which will expose the rift between paper prices set in NY and the structural changes undergone in the physical markets over the last several years.
But for now… Nobody Cares.
Williams says that while nobody seems to care about gold anymore, at least at establishment levels in the West, in fact central banks have turned from sellers to buyers and demand for metal is robust nearly everywhere, especially in China, where the Shanghai Gold Exchange is delivering 52 times more metal than the exchange perceived to set world prices, the New York Commodities Exchange.
Plus while the gold price has been slaughtered for four years, simultaneously the fundamental factors supporting a higher price have increased greatly.
Williams notes that market rigging by central banks and their agent investment banks may be a cause of pricing incongruities. He concludes that eventually everyone will care about the gold price and that there’s not enough gold to accommodate everyone.
You can scroll down to watch the full 28 minute presentation below which is very entertaining with Williams usual dry wit.
But really – Because nobody cares