When it comes to assets, economists, Wall Street, and central planners love them all… except one: gold. Forget about Bernanke’s hilarious sworn testimony that gold has “value only due to tradition”, and recall Mario Draghi’s QE announcement in December 2014 when asked what sorts of assets should be included in QE, his response: “we discussed all assets BUT gold.”

Well of course the ECB will never buy gold – by its very nature, the precious metal stands for everything the legacy insolvent regime patched together with the superglue of money printing central-bankers, hates: prudent use of money and leverage, living within one’s means, and most importantly, saving not spending. Gold applied to the current regime where the world is drowning in about 3.5 times more debt than GDP would mean wiping out trillions in equity value that should not exist.

It also makes impossible such monstrous abortions as $1 quadrillion in global derivatives which, like a house of cards, is only as strong as the weakest counterparty, and is why central banks around the globe have gone all in on the Greenspan/Bernanke/Yellen/Draghi put, and will never allow another major bank to fail again.

Ironically, while the “very serious”, if laughable and totally discredited people, take every opportunity to bash gold, they are quietly buying up all the physical gold they can find, whether it is in London (where the local vaults are practically empty), or in Beijing or Bombay, which are the largest natural sources of demand for physical gold.

Lately these same “serious” people are starting to get nervous, because while most other “commodities” have seen their prices plummet in the biggest crash since Lehman, gold just went green for the year. And the last thing the financial system, already teetering on the edge of global recession, can handle is another massive momentum wave out of “intangible” assets and into very real gold, like what happened in 2010 and 2011 before the BIS ended gold’s meteoric rise in September 2011.