Like it or not, Gold and Silver prices are still directly related to COMEX and given Friday's rapid price decline, one has to wonder whether gold will get decimated in future trading sessions?
If you really believe that the Dow is going lower then there is a case for seeing more and more hedge funds liquidating their gold holdings on the way down. Like the overall market, this game is played with the following rule; first one out the door gets the most money.
I am starting to become convinced that gold could see a rapid spike down. The most worrisome part of Friday's drop is the lack of rebound in price (particularly silver)
I agree gold is going down but it is being used by the federal government to support the dollar. This can only go on so long as I expect to see the hedge funds fail followed quickly by the derivitives by the end of this year. They will not be able to continue this false support of the dollar and will be forced to cut in half the value of the dollar and go to the amero. You will see evidence of this possibly on Nov 15 when OPEC holds its emergency meeting to cut production of oil raise the price per barrel and more then likely express its interest in leaving the dollar for a gold dirivative currency. This idea has been mentioned many times before in previous meetings but has once again has been eliminated by the press which has been censored. I realize some of you may disagree but my feelings are that gold,silver will return to the economic forefront by the middle of November. Whether you agree or disagree is your own personal right. I would say gold at 1600 or above is not a fantasy as early as January. The european countries have already cut their anual dumping of gold short for the year as the projection of the price of gold increases as a base of world currency.
All I know is that I keep seeing on the news, "One way you can get cash for your bills is to sell your gold jewelry."...then they show a clip of people rummaging through their old jewelry and taking them to pawn shops...and women holding "gold selling parties". Hmmmmm? Seems that there are some investors looking to buy gold, and hold on until the price goes up again. The media caters to___________? You fill in the blank. They want people selling their gold.
Well, Silver was at a 2 years low before this whole unwinding thing started to begin with, so I dont think many hedge funds have been holding it to begin with...as far as gold , who knows...will foriegn investors in Asia and ME start buying heavily as our hedge funds dump to meet their calls? Or do they still trust the dollar.