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Why the Gold Smackdown?

  1. Been following gold last couple weeks, first time in awhile that bears have dented this thing. I am just learning the fundamentals that affect this product, is the recent $50 or so move down in relation to some peoples sentiment that QE2 wont be as big as first anticipated? Thanks.
     
  2. Fast money. Can't take the heat. They got in after the QE II started to be discussed. They came in more then a bit more and then looked around and no one was coming in anymore. They were left holding the bag. They dropped the bag like a hot potato.

    $50 is nothing. Wait for the 300-500 drop
     
  3. Because gold was parabolic in shape - that's what happens to parabolic moves
     
  4. I think what Ivan is trying to say is, "buy the rumor, sell the news."

     
  5. <img src="http://www.kitco.com/LFgif/au00-pres.gif">

    Very impressive run.
     
  6. You call this a smackdown? Gold makes these down moves every few months, it's normal & expected.

    Observe most stocks in a bull run, they have sharp corrections periodically.
     
  7. Marc Faber and Felix Zulauf said a correction in gold was overdue and weakness should be bought.
     
  8. <img src="http://www.kitco.com/LFgif/au75-79.gif">

    Similar?
     
  9. Also, options expiration. Should be back up next week or so.
     
  10. Let's not forget the obvious, oversold greenback, oversold for now.
     
  11. Very impressive. Gold prices move from $300 to $1300 on around 10 years. Actually, up to now, I still looking for the answer of this change. Unbelievable!
     
  12. +1
     


  13. A 20% correction (300) is not out of the question. I would be surprised if we get it at this level as Fed appears helpless at this juncture and must resort to propaganda.
     
  14. No, it's just a natural shakeout after a one-way move from 1160 to 1388 with barely a pullback. Markets rarely go up in a straight line, there is normally some backing and filling as weak hands and hot money pile in and then get stopped out.
     
  15. If you call a 400% price increase in 3 years similar to an 80% price increase in 3 years, then yes. Otherwise, not even close.

    A similar 5-fold appreciation over 3 years would imply gold from $700 in late 2008 to $3500 by the end of 2011.
     
  16. Does this leg down qualify as a smackdown?
     
  17. I bought more yesterday. So maybe you should sell.
     
  18. Ivan posts longer timeframes thereby making the curve steeper (more 'parabolic'). This move from 1000 to 1430 began with a breakout from a truly massive H&S. A correction to 1220 or so would'nt indicate a trend reversal.
     
  19. I love lower prices in the barbaric metal.
     
  20. Long after the fantasy of civilization has passed the barbarians will still be around, trading in gold.
     
  21. The barbarians were the civilized ones.
     
  22. At least they were 'natural' -living in accordance with natural logic. Supply and demand is also natural; the limited supply of gold vs the unbounded supply of paper money makes gold the natural currency, paper money merely a hypothetical.

    ..or words to that effect.
     
  23. Did they know how to get the best bid and ask price of gold around the world on the internet, an invention created by a government they never had? What was the worth of such a government and infrastructure? Won't such a paper money created by said government be worth something or is it too "hypothetical"?
     
  24. Actually, no. In 1979 gold went up 120%. In 2010 gold went up 29%.
     
  25. Come on, everything is going good. Earnings are strong, economic fundamentals are improving, fed not giving and hint of further QE. Why would gold be ripping now? I still think the trend is up, but come on even climbers need to take a break once in a while. Friday it took off with this egypt thing going on despite dollar strength! There is still a gold bull market around the corner, lets not forget the $2200 inflation adjusted price acceleration equivalent (1979/80 ish) everyone is talking about.