Loading ...the price is going to go down. Period!
One last chart for right now… it is the big gold ETF, GLD, which reported holdings that once more dropped. Total holdings are now at 772.25 tons, having now dropped to a level last seen in early December of 2008. All that gold that was bought based on the experiment we now call Quantitative Easing has been sold and the money put to work elsewhere. Simply put, Western-origin gold investment demand stinks to high heaven. Just remember that whenever some huckster out there regales you with wild, baseless and unverifiable claims of “massive gold buying”.
Sure someone is buying the gold that is being sold but that is true in any market, even as it falls in price because there must always be a buyer when there is a seller. The point to remember however is that if there are more sellers willing to sell at a lower price than there are buyers willing to buy at a high price, the price is going to go down. Period!
A last written item – in watching the Japanese Yen trade in the midst of this carnage this morning, I am noting some firmness in that currency, as well as in the bond market, telling us that there is some safe haven buying occurring against this backdrop. It does appear that is what is keeping gold supported about the $1200 level for now even as the gold mining shares evaporate in price.