i'm really glad you brought this up.  i've been meaning to talk about this.

miscreanity calls gold an asset as do i.  i believe that gold as an asset can inflate just like any other asset via USD inflation.  the derivatives mkt is no different.  as is the gold derivatives mkt.  gold pundits argue that if we get a gold derivatives implosion there will be a scramble for physical gold which will drive it to the moon.  but you have to ask yourselves:  what were those derivative positions funded with?  Answer:  USD's.  so if anything, a gold derivatives implosion should cause a scramble for USD's (or a shrinking of the total virtual USD's depending on how you like to think about this) causing a further skyrocketing of the USD.  if THAT happens, what becomes of the physical gold price?