Q: What is the relationship between hunger and the bottom in the gold market?
A: Both have a central emotional component.

Q: Yes, all value is subjective. It is the subjective response to events, not the events, that control the action.
A: There is one counter intuitive thing that makes all food deliciously desirable.

Q: And what is that?
A: The absence of food. The longer it is absent, the more deliciously desirable it is upon arrival it is. Fasting is the one simple thing you can do that will make food more delicious then the worlds best chef and an unlimited budget to buy the best products. But, how many people use that fact to their advantage? Maybe 2%? How many people gorge themselves? Use more spices? Monosodium glutamate? Drugs?

Q: Can you tie that back into picking the low in the gold market?
A: Certainly. The best time to buy if after a time when the buyers have been fasting for a long time.
Not when they are gorging themselves. If gold goes under $1,000, the majority will be short selling it. There will be few or no buyers. They will have bottomed out in their fast. That will be the time to buy.

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By Arthur Fixed

What will be the market price of the first bank’s shares nine months out? If we are correct in our analysis that the game is fixed, we can surmise it will be less than today’s price and the cost of maintaining the short position.

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