Posted on 05/17/2013 4:16:57 AM PDT by blam
CREDIT SUISSE: 'Gold Is Going To Get Crushed'
Sam Ro
May 17, 2013, 12:41 AM
Bearish sentiment toward gold has prices for the yellow metal tumbling again.
On Wednesday, George Soros revealed through a regulatory filing that he cut his gold exposure during the first quarter.
In a new note to clients, Credit Suisse's Ric Deverall forecasted that gold would plunge to $1,100 this year and eventually to $1,000 within five years. This according to Bloomberg's Maria Kolesnikova.
More from Kolesnikova:
Gold is going to get crushed, Deverell told reporters in London today. The need to buy gold for wealth preservation fell down and the probability of inflation on a one- to three-year horizon is significantly diminished. ... When gold is going up, it looks like a great idea to buy more gold, Deverell said. And when its going down, do you really think risk-averse central bankers are going to try and catch the knife? No.
Deverell was responding to the latest stats on central bank gold reserves. According to a new report from the World Gold Council, these banks bought around 109 tonnes of gold in the first quarter, marking the seventh straight quarter of net purchases.
(Excerpt) Read more at businessinsider.com ...
The 8 AM smackdown got smacked back hard today. $1365 looked pretty grim, but the rebound to $1380 keeps it within a day or two of $1400.
Today is option expiration for stocks; this month’s options on gold and silver futures is May 28. I have to guess that They have an obligation to screw put holders this time for a change.
The demand for paper gold and paper silver will drop to zero as more and more people realize that the ETFs are not backed by physical precious metals. GLD and SLV are is nothing more than an IOUs that are payable in fiat currency. You should carefully read and analyze their prospectuses if you didn't already realize this.
Physical precious metals are already in backwardation, premiums for physical are growing every day, arbitrage is failing to equate paper and physical prices because people are afraid to part with their physical, the Comex and JP Morgan vaults are at low extremely low levels, many believe a default similar to recent ABN AMRO debacle is imminent for both the LBMA and Comex.
For much more information on the subject, I recommend you read the Zero Hedge, GATA, Harvey Organ, Eric King and Turd Ferguson blogs.
As. of the end of the day (5:30 eastern time)...
..the price has dropped by $11.60 to $2,791.23 for 100 old Morgan dollar coins.
I am so tempted...wish I had a crystal ball!
(But I still remember buying these for 6 bucks apiece many years ago.)
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