Gold says - "the reports of my death have been greatly exaggerated"
Traders are selling gold, ETFS are liquidating positions, but reports indicate Central Banks are still buying and the demand for physical gold has shot through the roof, creating shortages of the actual metal all over the world.
Let me repeat that part - "creating shortages of the actual metal all over the world"
Now if Gold were to test new highs later this year or next, both TC and Royal Gold would have a really nice cash flow windfall.....You just may want to buy TC at 30% of book value and 1X possible forward (2014) earnings......
Here are a few other quotes to ponder.
"Goldman Sachs on Tuesday reversed its high-profile call to short gold, which it made two weeks ago, just before the metal sunk into bear market territory."
"The U.S. Mint said it has suspended sales of its one-tenth ounce American Eagle gold bullion coins as surging demand after bullion's plunge to two-year lows depleted the government's inventory.".....
...."Michael Kramer, president of Manfra, Tordella & Brookes (MTB), a major U.S. coin dealer in New York, has been inundated by orders from existing and new wholesale and retail customers.
"It's panic. This is one of the busiest times in quite a while. People think gold's at the lows and they want to take advantage," he said in an interview."
Meanwhile, physical demand has helped gold bounce from a two-year trough of $1,321.35 an ounce hit last week. Premiums for gold bars soared to multi-year highs in Asia on low supplies, with dealers in top consumer India expecting a surge in imports this month."
"Investors should own gold as a bet on global liquidity, FX Concepts Chairman John Taylor said Tuesday......Taylor called the recent gold selloff as getting "a little out of hand" and said he was still positive on the precious metal. "I look at it as a leader and a lagger," he said. "It's a perfect liquidity trade. It tells you what's going on with liquidity, and liquidity has gotten tighter, not looser.""