now pundits are sayin gold could drop to $800/oz
problem is it has no intrinsic value, no real industrial value, no yield, just a shiny metal people have used as money in the stone age. Its just a big bulky metal now and no one wants it. Price was in a bubble and now that bubble is bursting as institutions are seeing that global economy is not falling off a cliff. No reason to hold gold so its selling off hard now. Miners already are near bankrupt, now with falling gold and no buyers the earnings going south fast, so its logical the stocks for the gold miners will tank and keep falling.
No dead cat bounce here and even if there is then its just naive buyers or shorts covering, not sustainable.
Catching a falling knife is not an investment strategy.
Gold miners going down in flames and the thing is this was entirely predictable. About a month ago I was saying miners look weak both technically and fundamentally and to not try to call a bottom. That was about 40% ago, since then this has only further destroyed the chart. No buyers down here, chart is broken, this is no mans land now, gold miners in free fall. Get out while you still can.
Maybe at $5 then rising up close to $10 after a few months I would consider buying, once gold had put in a bottom. Until then Im just watching the carnage from far far away.