Gold from $1650 to $1320 in 6 mo

$780

Blame Cyprus
here-we-go-cyprus-sells-gold-to-finance-part-its-bailout
Then leveraged hedge funds kick in and voila

On April 15 2013 21:18 Centrin wrote: Blame Cyprus here-we-go-cyprus-sells-gold-to-finance-part-its-bailout Then leveraged hedge funds kick in and voila

I blame Michael Bisping and Costa Philippou.

A lot of funds got leverage on their leverage to buy gold
leverageception
that and under $1500 was a minefield of stop orders

This is really the first major flush ever since gold's meteoric rise from the $400s from 2004. I'm actually surprised it held $1500 for as long as it did. Everyone buying above $1500 was essentially chasing a 400%+ move in less than 10 years.

That said, I'm pretty bullish on gold. The only reason I haven't bought any yet was to avoid chasing price at a point in time when the play was too obvious (obvious in the sense that everyone who wants gold already owns it, and that shorts have been stalking it for any sign of weakness under $1500), and at the same time facing selling pressure from the overleveraged funds that already own gold. This made the short term downside risk too high for me. I'm going to be buying in the $800 - $1000 range. Will be willing to pay up to $1100 if I see that $1000 is well-bid. I actually think gold can trade as low as $700-$750 but that's a bit of a stretch and I'm happy with my risk/reward owning it slightly higher too. I think it goes to 2k by 2020

Lost a few, ehh, pennies. heh.

I will probably start buying soon. Just don't wanna catch a falling knife.

Gold regained some strength today but it could be some kind of bull trap I guess. I'm really not sure how it goes in the short term.

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