Steve Mathews of famed Tudor Investments provided great insight into the inner-workings of metals markets (gold, silver, platinum).
I thought this was a great concept that many forget:
I’m going to go back to something I said earlier: gold is not a commodity. My fundamental analysis framework is inappropriate for forecasting gold prices. Obsessively following mine production and demand are valuable only as a way of anticipating actions of other traders.
Gold trades as a form of foreign exchange.
Therefore the price of gold is more impacted by the relative value of fiat currency, rather than the supply/demand for gold. Gold will go up in value when paper currrencies go down in value. This occurs when central banks print money.
