Who's selling all the gold???

14 posts / 0 new
Last post
Erik T.'s picture
Erik T.
Status: Diamond Member (Offline)
Joined: Aug 5 2008
Posts: 1234
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

Lemonyellowschwin's picture
Lemonyellowschwin
Status: Platinum Member (Offline)
Joined: Apr 22 2008
Posts: 561
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?

mainecooncat's picture
mainecooncat
Status: Gold Member (Offline)
Joined: Sep 7 2008
Posts: 488
Re: Who's selling all the gold???

Maybe this.

But it says they haven't sold it yet.

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3200
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.

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

Doug

rickets's picture
rickets
Status: Silver Member (Offline)
Joined: Jun 8 2009
Posts: 238
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.

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
Re: Who's selling all the gold???
Doug wrote:

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

Liquidity Flood/ Liquidity Drought.

The inflation trade just burped.

(edit: added CoT data)

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
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

robie robinson's picture
robie robinson
Status: Diamond Member (Online)
Joined: Aug 25 2009
Posts: 1220
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

Erik T.'s picture
Erik T.
Status: Diamond Member (Offline)
Joined: Aug 5 2008
Posts: 1234
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

 

plato1965's picture
plato1965
Status: Platinum Member (Offline)
Joined: Feb 18 2009
Posts: 615
Re: Who's selling all the silver.. ???

 

 Everybody knows the dice are loaded.... (tm)

 

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

 

compinthegroove's picture
compinthegroove
Status: Silver Member (Offline)
Joined: Nov 8 2009
Posts: 113
Re: Who's selling all the gold???

We had a big selloff today, and the pattern repeats.  In reference to the original question, "who's selling off all the gold?", my answer is nobody.  Futures contracts are paper, not gold.  There is no spoon.

ed2011's picture
ed2011
Status: Member (Offline)
Joined: Aug 21 2010
Posts: 6
Re: Who's selling all the silver.. ???

yeap. I saw that video a few months ago and read up on some things. No doubt there's a lot of fraud out there in the gold market and when the ball drops, a lot of people are going to get crushed bad.

At least if you get stuck in a stock like MSFT when it goes down, you still have ownership in a real business and you get a nice dividend while you wait for the rebound. With gold, you get nothing and you might have to wait 30 years just to break even. People who bought gold in 1980 are still down by 60% adjusted for inflation.

I think gold will go a good deal higher but I dont want to be caught in it when the bubble pops.

TommyHolly's picture
TommyHolly
Status: Bronze Member (Offline)
Joined: Nov 9 2010
Posts: 90
Re: Who's selling all the gold???

I've heard from lots of people that there is a bubble in the Gold Market.  However, I'm not so sure it will drop so far that it will crush anyone.  With the economy the way it is, and the printing of money I see it going even higher and still be a reliable investment.  Yes there is over marketing and too many small EFT traders driving up the prices but at the same time, there are very valid reasons for doing so.  I'd expect for some price adjustment if there was some good news about the economy (even if it was fabricated like using Obama's magical math) but then followed up by another rise soon after.

I switched my entire porfolio into Commodities and 40% of that into Silver and a little Gold.  Both have really paid off as an investment and as a source of security.

realasset's picture
realasset
Status: Member (Offline)
Joined: Dec 30 2010
Posts: 4
Re: Who's selling all the gold???

Something I saw posted at AFE

WASHINGTON Dec 21 (Reuters) – The International Monetary Fund said on Tuesday it had concluded the sale of 403.3 tonnes of gold under a program approved in September 2009 to help boost its lending resources.

All gold sales were at market prices, including direct sales to official holders, the IMF said in a statement.

The gold sales amounted to one-eighth of the IMF’s total gold reserves. The fund sold 200 tonnes to India’s central bank last year.

Other buyers have included Bangladesh, Sri Lanka and Mauritius.

The IMF said on Nov. 29 it told 19.5 tonnes of gold in October, but it has not yet provided details of sales in November or December.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments