isn't the precious metals market negatively correlated to the currency market. i read that the silver market is 70 percent based on us dollar value. thus the value of the dow is not it self directly linked to the precious metals market but only through the effect it has on the currency value. if that is the case and the dow has an impact on the currency market. i think that the seniorage (quantitative easing) supersedes the dows impact. even though inflation hasn't hit yet there is the potential (high) that it will so the gold price is not affected.
This gold commercial (some kind of radio ad it says on youtube although it seems like it was definately geared for people to see it on tv) came out in may 2006 when gold was 550$ per ounce telling people to buy gold http://www.youtube.com/watch?v=IEAb8Hbk_Q4 You also say that the pros are dumping...but I'm seeing tons of those Cash4gold.com commericals that are trying to buy your old gold. In fact I believe i have seen more cash4gold commericals than these commodities brokers. And besides...those brokers always sell whatever product is most talked about. Before gold went up, i saw the same commericials back in 2000 using 1980 gold prices and saying that gold could go back to those levels soon(which they did)
Yes, but I believe the cash for gold business model is raping joe public who is in dire straights by paying him well below spot and making their money on the spread. I see that more as taking advantage of the average americans hard times than an opinion on gold. However they arent asking for silver jewelry, so who knows. Maybe because the price per ounce is too small and margins get squeezed.