"The reason high[er gold] prices [haven't mobilised] above ground supply is because gold is monetary. There is not other commodity that behaves in this manner. Any commodity with around 60 years of annual new supply above ground would have a price close to zero." -Bron Suchecki
Gold has intrinsic value, but in a way that's not intuitively obvious. First, let's be clear that nothing really has value in itself, apart from what evolutionary forces have conferred upon it (or more precisely, conferred upon an organism's psychology) to better assist its survival and reproduction. So, a bucket of shit has no value (intrinsic or otherwise) to us, but a dung beetle would fight to the death over it. Similarly, sex is fun for all sentient organisms precisely because those who don't find sex pleasurable are likely to be weeded out of the gene pool. In this way, I think the way humans instinctively regard gold as valuable has to be an evolved trait. (You can say we like it because, e.g. it is shiny, but that begs the question: why do we like shininess?) Remember: human evolution, especially psychology/personality evolution, is surprisingly fast.
Any human in history and prehistory who didn't value gold would be at a competitive disadvantage, while those that really dug the stuff (literally and figuratively) would be selected for. (There could be group selection at work here too, a phenomenon whose nonexistence has been exaggerated).
Of course humans are a very malleable species. In North Korea, for example, you have arguably the highest IQ population in the world shedding tears over the death of a cruel and chinless midget. So, just as in Sweden they're trying to make urinating standing up illegal (this is true; it's apparently sexist that men get urinals), so in the Western world we've been inundated with propaganda that gold is a thing of the past, replaced by green linen. True, these cultural engineering experiments sometimes work to completion, but I have my money on human nature winning out in the end.
Only 3 charts this week. Silver closed at its lowest weekly point since November 2010. (Really!) I vowed not to trade silver back on May 6 (with the elegant proclamation that "the charts smell like farts"). (Don't ask me why I didn't short. I don't like shorting the metals, though I'm more likely to do so when they look "too" good than when they look bad, since I think they are likely manipulated to look bad right before they explode to the upside). This log chart looks headed to $22-23 (I was too lazy to include the linear chart from last week, where I circled the same point). That said, I am skeptical when the charts look this bad in such an obvious bull market. I would be surprised if silver can be pushed that far. But that's what the charts is saying.
With gold, I'm also waiting for the 144-day/ purple channel to be cleared. Limited return to risk shorting from here, and no need to try to be a hero and come in at the bottom. I'll wait.
Though the brown channel on my monthly chart (coincident with the 21-month MA at $1569) continues to be solid support: