CanOz
Home runs feel good, but base hits pay bills!
- Joined
- 11 July 2006
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Now down to US$1,347.50 per ounce, maybe we should sing Credence Clearwater Revival "Who'll stop the rain" and substitute "price" for "rain".
Just goes to show what you can do with deep pockets, a bit of media coverage and a big client base willing to follow your lead. They must be making billions as we speak.
Gold prices dropped $140 to $1,361 an ounce, a 9 percent fall.
Gold has now slumped $203 an ounce over the past two days.
Looks like John Paulson's fund has lost a billion dollars on gold in the last few days.....now why would a guy like Paulson play in a manipulated market like gold?
Deep pockets liquidating longs!
I can't see that he has sold anything yet? Not that there is any sympathy for ETF holders. Paulson is made out to be some sort of investing guru but from what I can gather he just got really lucky shorting a bubble?
Seems to be a $40 staircase down, rally, then another $40 down etc so far?
Nibbled some more physical @ $US1325/$AU1285
Getting closer! Looking like a test of 1200 is possible and quite soon. USDX is not there yet, I expect it to rally the DOW etc to continue to correct and short gold and related positions to be closed out and flipped under the covering fire that a stock market sell off would provide. If that is the case we should see relative strength in PM's etc against the DOW. It is finally over when the DOW is done correcting IMO...
Quite an impressive blood bath no?
Getting closer! Looking like a test of 1200 is possible and quite soon. USDX is not there yet, I expect it to rally the DOW etc to continue to correct and short gold and related positions to be closed out and flipped under the covering fire that a stock market sell off would provide. If that is the case we should see relative strength in PM's etc against the DOW. It is finally over when the DOW is done correcting IMO...
Quite an impressive blood bath no?
Getting closer!
Quite an impressive blood bath no?
So do you think it is a technical/paper/ETF driven 'correction' (by the The Firms) or genuine 'get me outa here' cycle finished thing?
I remember your 1200 from yonks ago but refresh our memories for that call?
So do you think it is a technical/paper/ETF driven 'correction' (by the The Firms) or genuine 'get me outa here' cycle finished thing?
Does it matter? Are they not really the same thing - just different ends of the stick.
There's articles popping up everywhere calling the end of the gold bubble. The fundamentals haven't changed. Things will eventually calm down.
So do you think it is a technical/paper/ETF driven 'correction' (by the The Firms) or genuine 'get me outa here' cycle finished thing?
Does it matter? Are they not really the same thing - just different ends of the stick.
I think it does, so just asking Mr Z for his perspective. At street level it's mostly people buying physical than selling, if you go by the clientele at the bullion co's.
Also, all these shorts have to be closed sooner or later so that will be interesting?
No, without going to far into conspiracy land the reports that I tend to credit are along the line that the events in Cyprus tripped off enough demand for physical metal that certain counter parties are at risk of default. This appears to have been a well thought out and orchestrated response to that threat, not to mention very effective. I have seen no claims of who is demanding how much metal but I would guess that, given the reserve ratio that some of these bullion banks run, it would not take an enormous amount over normal demand to throw a wobble into the system. Gold is not such a big market in the scheme of things. Maybe it is PO'd Russians looking to pull their cards closer to their chest. If true it would certainly seem that it is an unexpected and unintended consequence of actions taken in Cypruss. These things are not normally thought through to the enth degree, look at the trigger Lehman turned out to be.
So the short answer is ---> It looks like someone is in a boat load of trouble!
FWIW, once these lows are done I am feeling very positive about the next one to two years for gold. I have one caveat, you will need to be fleet of foot, I think the the new game will be to foster volatility to such a degree that gold appears to be an unattractive alternate to any conservative investor. If I am correct the next major high, if it occurs, should be mightily impressive, yet the next major correction will be even more terrifying than this.
I guess it depends if you are a trader or investor, no? The former, no it doesn't matter, the response should be to price alone and automatic.... investors however really do need to understand why... no? Or have I got the wrong end of your stick?
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