The current bout of extreme gold weakness coincides with resurgence in complacency despite the deepening crises in Turkey and Venezuela, continuing rise in populism across the Eurozone, acceleration of the deficit spending against the background of rising rates, increasing geopolitical risks, and historically generous financial asset valuations. In the past, any of these developments would have provided a catalyst for reduced risk appetite but no more – years of bailouts and market supports have in our opinion inured investors to the implications of systemic risks and reduced demand for systemic insurance solutions such as physical gold and mining assets. Throughout history, periods of complacency rarely ended well. The time to buy insurance is when risk perceptions are the lowest making insurance cheap relative to the risk. We believe that now is such a time.