Magenta Posted April 15, 2013 Share Posted April 15, 2013 http://www.zerohedge.com/news/2013-04-15/gold-drops-most-30-years http://www.kitcosilver.com/charts.html Link to comment Share on other sites More sharing options...
Magenta Posted April 15, 2013 Author Share Posted April 15, 2013 . Link to comment Share on other sites More sharing options...
Existing Alternatives Posted April 15, 2013 Share Posted April 15, 2013 Fantastic opportunity to be a buyer. Bring a bag, a truck, whatever you got – buy! Buy! Buy! The only reasonable explanation of this that I heard was Cyprus being forced to sell off their gold reserves to cover the costs of the bailout. Makes you wonder, if they had enough reserves to move the market like this, why did not they sell it in first place, why bother with the whole “haircut” bs? Isn’t it why they have those reserves to begin with? Anyone heard of other reasons? Link to comment Share on other sites More sharing options...
lyghtningrod Posted April 15, 2013 Share Posted April 15, 2013 Anyone heard of other reasons? http://www.foxbusiness.com/markets/2013/04/10/goldman-sachs-lowers-gold-forecast-for-2013-2014/ Pointing to forecasts for stronger U.S. economic growth later this year, longtime gold bull Goldman Sachs (GS) slashed its price targets on the precious metal on Wednesday, warning prices could tumble below $1,300 an ounce by the end of 2014. Link to comment Share on other sites More sharing options...
Alan C. Posted April 15, 2013 Share Posted April 15, 2013 It's because of the sell recommendation. Peter Schiff has been talking about it for several days on his show. Now is a good opportunity to take advantage. Link to comment Share on other sites More sharing options...
Existing Alternatives Posted April 16, 2013 Share Posted April 16, 2013 @Lightningrod, thank you for sharing this. @Alan, do you have a link to what he said the reasons for his recommendation would be? I am still not clear on the “why”. GS issued their forecast on Wednesday, the market started going south mid-Friday – there is no way 24-hr market would take that long to respond. On top of that GS has been shorting gold for some time now – COMEX saw a notable increase in short positions for the last three months. “US economy growth to accelerate”, “support for real rate” – What growth? What rates, near zero? In terms of issuing recommendations, it’s hardly worth considering – any given day there are tonnes of both “buy” and “sell” recommendations out there, extremely few of them ever hitting the target. Even them it has much more to do with luck than any kind of substantiated analysis. If you’d know how the market would move you would not be prognosticating – you’d be buying and / or selling. Link to comment Share on other sites More sharing options...
PatrickC Posted April 16, 2013 Share Posted April 16, 2013 It's because of the sell recommendation. Can you explain this breifly Alan, when you have time. Or point me to the relevant podcast perhaps. It's not clear to me what this means. Link to comment Share on other sites More sharing options...
Existing Alternatives Posted April 16, 2013 Share Posted April 16, 2013 Here is something… a bit of a hearsay, but still… http://etfdailynews.com/2013/04/15/how-the-gold-market-was-crashed/ Highlights: - Unusual FED’s transparency - Leak on Cyprus sale intent (not official information) - London system freeze - New York markets stays open past 5pm (since when?) Link to comment Share on other sites More sharing options...
Alan C. Posted April 16, 2013 Share Posted April 16, 2013 Sorry, but I can't point you to the exact podcast. I listen to Peter Schiff every day while I'm working and he has been talking about Goldman Sach's sell recommendation since last week. Also, he mentioned that some governments may be forced to sell their gold reserves to finance bailouts which would also contribute to a decline in prices. Link to comment Share on other sites More sharing options...
Existing Alternatives Posted April 17, 2013 Share Posted April 17, 2013 Finally! Somewhat sensible analysis on the reasons behind the fall. According to this author it comes down to some countries (Cyprus and Spain) having to use their gold reserve as collateral for further bailout loans. http://www.forbes.com/sites/christopherhelman/2013/04/16/gold-inches-up-as-goldbugs-seek-reasons-for-historic-rout/ Link to comment Share on other sites More sharing options...
Existing Alternatives Posted April 18, 2013 Share Posted April 18, 2013 You may find this interesting as far as reasons for gold plunge go (or governments' interventions into banking). Basel III agreement has removed gold as possible liquidity carrier in a move regarded as effort to keep USD as the main reserve currency. http://www.forbes.com/sites/greatspeculations/2013/04/17/gold-will-get-the-last-laugh-on-central-banks/ Link to comment Share on other sites More sharing options...
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