Posted on 04/15/2013 11:35:00 AM PDT by Ernest_at_the_Beach
Gold prices continued to plummet Monday on concern that Cyprus will have to sell excess reserves of the precious metal to raise about $522 million to help finance that country's $13 billion international bailout, Dennis Gartman, editor of The Gartman Letter, told CNBC.
"There are a lot of people throwing up their hands. Throwing positions overboard. Panic is everywhere," Gartman said in a "Squawk Box" interview on Monday. "I've never seen anything like this. I mean it."Article Continues Below
Gold prices broke below $1,400 Monday, their lowest level since March 2011. "Here we are under [$1,400]," Gartman observed. "Who would have thought it? Not I."
"I think it would be unfair to force the Cypriots to sell [gold] and not to have others do exactly the same thing," he argued. "I expect Spain and Portugal, Italy will also be rumored to do it, and that's weighing on prices."
(Read More: Here's Why Gold Is Getting Crushed)
What I have expected to see, and haven’t thus far, is a flight to the historical safety of bonds (if you can call it that anymore). Bond yields haven’t reflected that as of yet. Where in the he77 are the funds moving to? I’m stumped right now.
Was wondering the same thing...
With all of this selling, where is the money going?
Flight to what asset class?
Stocks being sold, gold sold, oil sold....
Maybe folks are buying lead and lead delivery platforms?
So... what would someone be “stocking up on cash” for...
Any ideas?
Someone has prompted the sale of gold so someone else can buy it on the cheap by prearrangement? Who and who?
My LEAD seems to be worth more each day 1
My guess is that the Cypriots really don’t have any gold to sell. Probably a good time to buy now, but I bought just a day before this big crash started.
Bonds are already very low (US10YY 1.71% just 30 bps above all-time lows). My guess is that are just withdrawing and holding in cash for now.
“Who and Who” just may be the same entity :-)
That would be my move, unfortunately, supply is not available at the levels needed to stow away that kind of cash. Have you tried to find .223, .45acp, or 9mm lately? Not available.
Yes - exactly - if you have gold don’t sell it! At some point the big short sellers will go long and then we’ll see a very fast turnaround - maybe more for silver
No one is that dumb - especially the Goldmanites of the world. He who is left holding the largest bag of fiat currency LOSES, by all measures!
Do you catch knives for a living? :-)
Gold, silver, and oil are decreasing for one reason only - international deflation, brought on by an intentional credit squeeze. It's happened many times before, and is actually needed from time to time when all money is debt-based.
Actually, yes.
I have purchased 5.56, .45 and 9mm lately...in quantity, and not at outrageous prices.
Some folks are asking ridiculous prices for things, at least on VA Gun Trader and Armslist.
One seller had a used Sig M400 Enhanced and he wanted $2,700 for it. That’s more than 2x the rate on Gunbroker for new...
Ding Ding Ding.. we have a winner.
Credit inflates prices, when credit tightents, prices decline, natural order of the world.
Buying opportunities on the way.
demand for metal is increasing...avail will be like ammo at this rate.
Obama eliminated any illusion of safety in bonds in his first year in office.
The DHS is buying tons of ‘lead’ just prior to the collapse of PM’s and stock market. What a coinkidinky!
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