Fleckenstein: “One of these days psychology is going to change regarding inflation, or the success of the central banks, and gold is going to have a very large run, whether it (the run) is $1,000 or $2,000 to the upside, I don’t know. It’s impossible to guess....
... All markets have fundamental facts that move them and sometimes the price action enters into that. With the metals, the price action seems to dominate the fundamentals a lot of the time. And the price action has been negative, so people are convinced it can only go down.
You have the dopiest of reasons dreamed up as to why gold should go lower, and yet they work. And all the intelligent reasons why it should go up, they don’t work. That’s just the way markets are. I already talked about how stupid JGBs are.
So if you understand that markets can be completely maniacal for long periods, gold is just another example of one. It’s got all the reasons in the world why it ought to go wild and yet it can’t. At some point it will and we will probably look at whatever the catalyst is and say, ‘Are you kidding me? That’s what made it go up.’ And then gold will get on a run and when it’s going up people (in the mainstream media) will make up reasons why they need to own it, just like they make up reasons for gold to go down.
... You know the overwhelming majority of the investment community is massively negative on gold, for reasons that make no sense -- that is, a self-sustaining economic recovery and the Fed and all this other stuff. It’s all nonsense. But they believe it and they are voting in bigger numbers and so gold goes nowhere. That will change but I can’t tell what day it’s going to change.”
at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/5/30_Fleckenstein_-_The_Fantasy_Will_Die_%26_Gold_Will_Skyrocket.html
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