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Who’s selling all the gold???

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  • Mon, Oct 26, 2009 - 06:52pm

    #1

    Erik T.

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    Who’s selling all the gold???

There’s a pretty big sell-off in gold afoot this afternoon. After a high of $1060 at 10am, the chart took a nosedive and is down more than $20 on the day at $1038 as of 2:50pm.

I’ve been searching my usual online sources for some color on what’s fuelling the sell-off but can’t find anything. Anyone have any insight into what’s going on?

Thanks,

Erik

  • Mon, Oct 26, 2009 - 07:12pm

    #2
    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: Who’s selling all the gold???

Well the dollar index is up substantially during that same period of time . . . . up above 76 last I checked.  Doesn’t that pretty much explain it?

  • Mon, Oct 26, 2009 - 07:20pm

    #3
    Peak Prosperity Admin

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    Re: Who’s selling all the gold???

Maybe this.

But it says they haven’t sold it yet.

  • Mon, Oct 26, 2009 - 07:37pm

    #4
    Peak Prosperity Admin

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    Re: Who’s selling all the gold???

I dunno, but the stock market took a dive at the same time:

http://bloomberg.com/apps/news?pid=20601087&sid=aQPsrPr.36mE

[quote]Oct. 26 (Bloomberg) — U.S. stocks slid, erasing an early rally, on concern lawmakers will phase out a tax credit for homebuyers and Bank of America Corp. will have to sell shares to pay back its government bailout. The dollar rebounded from a 14- month low against the euro and oil wiped out an early advance.[/quote]

My question is why are the markets and gold moving in tandem?

Doug

  • Mon, Oct 26, 2009 - 07:52pm

    #5
    Peak Prosperity Admin

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    Re: Who’s selling all the gold???

Its very likely that gold, and all commodities sell off should we see a sharp decline in equity markets.  Its not unlikely that a dollar bounce could trigger such a selloff as well.

When equities tank, people sell things that have not moved down yet.  Many many holders of gold are in it for the trade, not for the long term insurance.  Due to this, should we see another leg down, I think gold is very likely to get taken to the cleaners.

Last time equities went to lows (march) gold sold off about 15% from its previous high.

  • Mon, Oct 26, 2009 - 08:48pm

    #7
    Peak Prosperity Admin

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    And let’s not forget SLV

It is not just the financials, real estate and China I would like to see tank. Silver, the precious metal I have little belief in other than as a speculative vehicle, is taking the hit today too. Finally.

There’s a 60 minute chart of SLV showing a gap and some support. Let’s see what happens. Nice impulse tankage today I must say.

I have a few silver coins hanging around to barter with for bread in case of the elusive hyperinflation, but I am no sincere believer in the poor man’s gold.

Link

  • Mon, Oct 26, 2009 - 08:56pm

    #6
    Peak Prosperity Admin

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    Re: Who’s selling all the gold???

[quote=Doug]

My question is why are the markets and gold moving in tandem?

[/quote]

Liquidity Flood/ Liquidity Drought.

The inflation trade just burped.

(edit: added CoT data)

  • Tue, Oct 27, 2009 - 02:03am

    #8
    Peak Prosperity Admin

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    Re: And let’s not forget SLV

I’ll be surprised if the “Bejing Put” lets it below .9K Gold that is.

 

robie

husband,father,farmer,optometrist

  • Thu, Oct 29, 2009 - 04:37pm

    #9
    Peak Prosperity Admin

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    They were gunning for the stops…

I’m now convinced that the strength in the USD was only part of the story.

The greenback’s strength did pull gold down a bit. Close enough to the technically very important 1031 level that the floor traders decided to “go for the stops”. Everyone predictably had their stops in just below the technical support level at 1031, and the market bottomed at exactly 5 points below that level, only for long enough to trigger all the stops, then immediately rebounded despite the fact that the DX is still above 76 and holding. As I type this Gold has already rebounded through 1045 and the DX is still hovering at 76.10.

I was fortunate enough to smell (approximately) what was going on. I had a big stop on half of my position at 1028. Fortunately as gold dropped thru 1030 I had a strong hunch the traders were “gunning for the stops”, so I widened out my stop to 1024.5. Quite the strong reinforcement for the old wisdom that setting your stops where everyone else has theirs is asking for trouble.

Market manipulation sucks.

Erik

 

  • Fri, Mar 26, 2010 - 06:05am

    #10
    Peak Prosperity Admin

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    Re: Who’s selling all the silver.. ???

 

 Everybody knows the dice are loaded…. ™

 

http://www.zerohedge.com/article/whistleblower-exposes-jp-morgans-silver-manipulation-scheme

From: Andrew Maguire
Sent: Tuesday, February 09, 2010 8:24 AM
To: Ramirez, Eliud [CFTC]
Cc: Gensler, Gary; Chilton, Bart [CFTC]
Subject: Fw: Silver today

Dear Mr. Ramirez,

I hadn’t received any acknowledgement from you regarding the series of e-mails sent by me last week warning you of the planned market manipulation that would occur in silver and gold a full two days prior to the non-farm payrolls data release.

My objective was to give you something in advance to watch, log, and follow up in your market manipulation investigation.

You will note that the huge footprints left by the two concentrated large shorts were obvious and easily identifiable. You have the data.

The signals I identified ahead of the intended short selling event were clear.

The “live” action I sent you 41 minutes after the trigger event predicting the next imminent move also played out within minutes and exactly as I outlined.

Surely you must at least be somewhat mystified that a market move could be forecast with such accuracy if it was free trading.

All you have to do is identify the large seller and if it is the concentrated short shown in the bank participation report, bring them to task for market manipulation.

I have honored my commitment to assist you and keep any information we discuss private,however if you are going to ignore my information I will deem that commitment to have expired.

All I ask is that you acknowledge receipt of my information. The rest I leave in your good hands.

Respectfully yours,

Andrew T. Maguire

 

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