Gold

[Jog On]

Is getting absolutely hammered - $1639 and falling

 

[Jeff Maginty]

..

 

[MarillionFan]

Is getting absolutely hammered - $1639 and falling

End of the world innit.

 

[Paddy]

Is getting absolutely hammered - $1639 and falling

The majority of gold is "paper gold" that is not backed up by actual gold; it is just like betting at Ladbrokes. Many investors have are concerned that the banks can not pay out on demand as there is not enough gold to meet demand therefore, investors are selling up.

 

[mudskipper]

You've got the power to show you're indestructible.

 

[Jeff Maginty]

..

 

[mos]

Is getting absolutely hammered - $1639 and falling

the Bloomberg was talking the gold up for the past few weeks ... and now they are taking profits ...
easy peasy lemon squeezy

 

[Jog On]

Article from last week but still relevant showing that some major US banks have massive short positions they need to try and get out of, depending on the outcome of this fiscal cliff thing gold could shoot up... - Maybe they need to drop the price to get out of their shorts and/or create a nice big dip to buy in the event of financial meltdown...

Gold futures market heading for crisis

The silver situation is even worse:

While there is a large stock of gold that can theoretically become available at higher prices, the same cannot be said for silver. We shall look at the position of the US banks first. The first silver chart shows that even though silver is trading well below its 2011 highs, US banks’ net shorts are substantially higher than might be expected. The long figure is down to only 625 contracts, while the shorts are 40,198, so these less-than-four-banks that reported last week have a net short exposure of nearly 200,000,000 ounces, or twice the estimated annual supply of silver available to investors after industrial demand is allowed for.

How the &%£^ is stuff like this allowed to happen? How can they open paper positions for twice the permitted amount of physical available? have they learnt nothing over the last 4 years?!

 

[mos]

The majority of gold is "paper gold" that is not backed up by actual gold; it is just like betting at Ladbrokes. Many investors have are concerned that the banks can not pay out on demand as there is not enough gold to meet demand therefore, investors are selling up.

The downfall triggers are more violent because bets are on margin. If the downward price movement on long position exceeds deposit set against the position, it will get closed, triggering sell order thus sending the price even lower. And so down it tumbles.

 

[mos]

How the &%£^ is stuff like this allowed to happen? How can they open paper positions for twice the permitted amount of physical available? have they learnt nothing over the last 4 years?!