In many ways, it will be the paper longs that abandon the gold markets (forcing prices ever lower) even as the physical price soars. Yes, the shorts may make a killing but the money they make will be worthless!!!!!!
MF Global seems to be scaring a lot of participants off. And, be honest, who had heard of 'hypothecation' (let alone 're-re-re-re-rehypothecation') before last week? Seems like everyone and their dog is using it now.
Why did I pick this track?
Who will be lonely in the market?
Why will this determine the price direction of paper gold?