and word is the Greek government will soon follow by selling gold holdings. Looks like little Cyprus set the tone for over 1/3 of Europe to start dumping gold on world markets.
Germany has pretty much told Portugal, Spain, Italy, etc., to start selling gold reserves or no more bailout money. Germans now say "You pay down debt with your gold and then we talk future loans".
as investors know the end of quantitative easing is coming, hedge fund managers are dumping gold and the dollar will strengthen. When gold drops eight days in a row you know its out of favor and GLD is headed for new 52 week lows, pretty much every week or every other week. Just watch how gold drops this week as Uncle Ben says he sees a day in the not to distant future when he starts to tighten, thus bring gold to its knees.
“Silver has regained its mantle of the ‘devil’s metal’,” said David Govett, head of precious metals at commodities brokers at Marex Spectron in London. Silver tends to mirror gold in its price movements, although the fluctuations tend to be larger, according to brokers. On a longer term view, the supply and demand forecasts for silver has cast a huge pall on the grey metal. Gold is going to fall further but silver will fall rapidly going forward.
Going long Gold or GLD would be the worst mistake an investor could make right now. Why go long either when there is no "fear" threat of a market collapse in US or other parts of the world. Why go long gold when Portugal, Spain, Italy, etc., will follow Cyprus footsteps and sell respective gold reserves to pay off billions in Euro debt. Why go long gold when Hedge fund investors and big pension funds are checking out of GLD and gold mining companies. It "game over" for gold bugs with investors putting their money to work elsewhere. Question now is will GLD hit double digits in July this year or August?
Sold my GLD share back in April - I can see the forest for the trees and gold correction dropping GLD down to $50 a share. Here is one of the reason why.
Williams doesn’t have a vote this year on the Federal Open Market Committee, but is among a chorus of Fed officials this week calling for a slowdown to the program. Gold is hurt by any talk that the Fed might stop that easing, which tends to weaken the dollar and make gold stronger, though the metal has not been responding in a typical fashion due to bearish sentiment and a downturn that began in mid-April.
Constant sales of gold-backed exchange traded funds have also undermined gold. Shares in the SPDR Gold Trust GLD -1.47% are down over 5% on the week, over 14% on the quarter to date. Earlier this week came news that billionaire investor George Soros cut his gold holdings in the first quarter and is planning to sell more gold holdings.
$120 next Friday and setting our sites on GLD hitting $100 on June 4th. Could see a lot of GLD longs selling out today since who wants to hold GLD over weekend and see it drop another 4% - 5% on Monday. US Dollar strengthening as gold dumping picks up speed across the world.
Rumor has it Paulson is joining Soros and dumping his gold holdings as fast as he can. Big boys know when the fish starts to stink it time to close up shop and fish elsewhere.
The game has been rigged for years. Double or triple (short) ETF's drop like a rock when ever the market shows any sign of upward movement. I mean these sucker crash hard when the market goes higher. But when the market declines VXX, TZA, TVIX, UVXY move up slowly. Oh so slowly that you wonder what the "F" is going on. Its a wonder the SEC or some hot shot "financial lawyer" has looked into the grossly illogical trading pattern of these "short" ETF's and then sued the hell out of the whole group.
Feel sorry for folks how bought and held, only to realize a month later, four months later, sox months later they have been had. Playing a game that is rigged in one direction with no "short" winners. They say volatility pushes these "short" ETF's higher but in realty it doesn't work that way. Case in point - North Korea Nuke threat - VXX goes lower. Boston bombing - VXX goes lower. Greece, Cyprus, Spain crisis - possible default VXX goes lower. Threat of U.S default VXX goes lower. Etc.
Best to wait for the Sun to die out and then buy VXX hand over fist. Of course by then you will have been dead 500 billion years so it really won't matter.
Dr Andrew Lilico just reported that Portugal and Italy will offer part of their gold reserves as collateral to access lending at lower rates. Seems like little Cyprus has shown the way for the big boys to follow. Gold correction about to ramp up as 1/3 or Europe dumps gold holding on world markets. TIMBER
Wonder hos wants to go long this gold ETF, if its pointed in the direction of DOWN?
Now retracing lows and more taking heads now saying gold most likely will be the worst investment for 2013 and 2014.
and he is now having a mental breakdown. Some guys never learn.
and you know going forward GLD will be brought to its knees. Panic selling starting to kick in and when it goes full bore watch GLD drop 20% over night.
Or should I say how far does the stock drop when other states follow NC lead and also ban future sales of Tesla cars. Wake up Board. If NC moves to restrict sales of Tesla electric cars with out using a middle man (dealership) then the flood gates are open and other states will take up similar legislation. All of a sudden Tesla minimal profit margin will get squeezed to nothing as the company realizes it either open up costly state dealerships (which will drop the stock to $20 a share) or die on the vine.
You think Ford, GM, etc. is going to let Tesla sell directly to customers when Ford, GM, etc. are restricted from doing so? If NC bans the sale of Tesla electric cars under current conditions Tesla share price will plummet. As in $80 a share down to $20 to $15 a share once NC news breaks
Scary stuff for Tesla longs..
I mean if NC bans direst (internet) purchases of Tesla electric cars the game is over. Other states will follow suit and then you will see Tesla profit margin get squeezed to nothing. Now I'm not in the camp that wants a middle man or some dealership making a commission off each Tesla sale but if NC ban the sale of Tsla cars in the state, Tesla stock could drop 50% in the flash of an eye.
and this is just the start of a massive gold sell off. Dollar is strengthening, Fed about to put the brakes on QE4 and all those (not very smart) retail buyers - buying in China and India will feel like fools when gold drops to $500 an ounce and there precious gold jewelry is worth 1/8 of what they paid for it. See you all at $130 at close and $128 tomorrow.