My theory (did I read this somewhere today?) is that a bank such as LEH had accumulated a large short position in gold futures. It was a brilliant trade, except they got forced to cover it in an untimely manner. Now everyone else who was short got screwed too. Is that crazy? Does LEH even trade commodities?
An incredible move. However, once the stock market bottoms (which looks like it'll happen in the next few days), gold is going to sink faster than the Titanic. IMO near $1000 (close to March highs) could be a good place to short. But for now it's got momentum on its side.
Yeah, but a little late to the game on that one. ;-) Silver has been selling at massive premiums to spot everywhere...including silver coins and items on Ebay. I know a silver dealer who has been in business since the last peak (1980) and he's never seen anything like the discrepancy we had between spot and physical. It's been going on for a while, and went to an extreme in the last few weeks. There are other factors, but this is definitely part of the reason it moved.
Not so sure about that. Right now, intermarket relationships are very tricky and are changing within months or even weeks (it used to take years). Stocks/gold were highly correlated until March, decoupled and reversed in mid-July, and have been crazy since then. I say all bets are off until a little smoke clears.