gold is the best investment out there, except for two things: 1) the price of gold is not a reflection of market supply and demand (big problem) and 2) there are too many big holders of gold, like paulson, who own so much that they distort the price for it IMO.
it looks like we may see, or are seeing right now, some very big players thinking about leaving the show.
but i love the idea of investing in gold. too bad the markets are totally corrupt.
i'm not in gold. i got out months ago. the market is corrupt because prices are manipulated and the sec, cftc, etc., do nothing. try reading a bit, it'll do wonders for your brain. start by reading about the libor fixing scandal that is just ripening and the 1.5 billion dollar UBS fine. if you think that the price of gold is reflected by supply and demand, fine. i don't, not that i have any clue if it is or not. all that i do know is that there is so much corruption in the market that its rotten. we probably don't even know the half of what's going on. just take a look at some of the cases that are brought everyday by the sec just to get an idea.
A big investor would liquidate slowly so they don't push the market against their position. Someone selling aggressively when the market is illiquid is looking to maximize the price movement down and flush traders out of their positions.