Hedge fund pulls out before another drop! http://seekingalpha.com/article/344...sl1:35a0cdc41d7db011d2c81dcb4e0b02f9&uprof=46 http://www.kitco.com/charts/popup/au0182nyb.html
I don't think it's hit it's bottom yet but it's close. Just means I can buy more! The more it drops the more I can buy!
You're putting in words. "Hedge Fund Pulls Out" (doesn't say why, you are assuming before another drop) and you are a few months behind (this was back in June). Also, it was the selling of the ETF which is paper and includes mining stocks as well as metal backing. Last, this is a hedge fund, so it's entirely possible that they had a significant short position in it - or elsewhere that they were covering. Either way, it's news from 3 months ago. Making future decisions on yesterday's news is very dangerous. Easy to say "I told you so" in hindsight. The key to this would be knowing what they are going to do tomorrow.
Just saying that it may be a harbinger of things to come. Also, the GLD does not hold any stocks (mining or otherwise) in it's ETF...it is 100% physical gold. All the technicals point to considerable more down side on gold prices.
Has any thought been given to China forcing the price of gold downward so they can buy more at lower prices?
Do you mean (China) dumping gold to lower the price?? That makes no sense at all. This article seems to indicate just the opposite... http://www.silverdoctors.com/tag/chinese-gold-demand/
And I just received this about 5 mins ago... http://seekingalpha.com/news/273559...-selling-pressure-on-gold?uprof=46#email_link
I didn't say they were dumping gold, I said "forcing the price of gold downward". There is a difference, a big difference. They devalued the "Yuan". That alone forced the metals lower, made the dollar more attractive, caused crude to drop and made the Fed unable to raise interest rates as they had planned to do. Adding to this is the increase of oil production in the US and OPEC not cutting it's production, which force oil lower. Some oil producing countries are cash strapped and may be forced to sell their gold reserves to pay their bills. All your link to seekingalpha.com says is "could". So prices go lower. That represents a buying opportunity of which I will be taking a part. My fair share mind you, is buy all I can and hold.
