Loading ...The two previous lows on Gold – circa $1,178 – $1,179 both took place at the end of quarters………………………..June28th, 2013 and December 31, 2013. Yesterday was a quarter end…………………………don’t things happen in threes?
I saw a lot of folks throwing in the towel – maybe with the silver spike down? There was an Agora writer – who put out a sell on the gold miners he had recommended years ago – after the close today. Just tired of seeing them dropping and ruining his credibility, I guess. There is a letter writer who basically runs juniors in a portfolio who got so convinced of the thought of gold breaking $1,180 that he is now net short through some inverse double or triple gold ETF derivatives – like DUST or something. He sold the last of his holdings yesterday into quarter-end portfolio dressing!
Anyway, as we all know, last night was a very disturbed one for those of us who have not sold. Then I thought of the quarter-end phenomenon and, it was almost like a revelation. Why not all the hedge fund and mutual fund lemmings exiting on Sept 30 to show no mining shares in their portfolios? I think this is worth pondering since we have been saying they are the ones who have grabbed the “short” mantle from the Cartel!
I admit that I had expected something of a rally earlier than now, but this concept of silver making a big low into the quarter end (and gold diverging by not doing so) appeals to me – and especially as a contrarian. My guess is the best bet is likely AGQ calls striking 48-50 for the snap back rally. It really depends a lot on the margin clerks as to what stocks might continue lower but if I were a betting person, which I guess I am, I think THE low on silver yesterday, might just be a good long shot bet! There is a pretty important cycle change date today and tomorrow!
George