Replies

Gold essentially tracks the dollar. If the dollar continues to weaken, gold should track higher. It is, however, a rigged market.

It is, however, a rigged market.

And when has it not been rigged?

BigMack

I believe the fall in the price of gold is because the hedge funds saw todays "pop" coming and had to sell their precious gold as the only asset with increased value to cover their shorts BEFORE today arrived.... notice unhedged gold stocks were down 9% today until right at the end when they "popped" back to UP 5%... a ~ 15% move.....this answers questions and poses worrisome questions... answers the sudden precipitous fall ( OK if you KNOW you can buy it back and make another profit)... and asks the question "How did the hedge funds ( note : they are "biggies only" funds ) know there would be a pop today ? Isn't that insider info ? The answer to that also is that the short selling institutions, part of the hedge fund "country club" , are, in fact, one and the same and therefore know when the massive shorts have to be covered to start a new round, and in the process can use their gold for 1) covering and 2) a round trip gold profit from the knowledge the individual investor has NO way of knowing. I guess the moral of this is that if the individual investor makes money ( spare me your "I made a million" stories, they are the same old lottery anecdotes and not pertinent ) in the stock market, as rigged as a State Line Nevada slot machine, then it is pure luck and millions more lose money. Even for the Clinton 90s , most individual investors I know ended up with a net loss. One anecdote that is true...I got completely out of the market in all funds including 401 s in February 2000 and stayed out until this January 2002 ... the market smelled too familiar of the 70s for me back in 2000.