'paper gold challenge, page-30

moorookamick.
its feasable to say that the run up in the POG was seen by some as a threat to the US$ and they jumped onto ETF's and shorted them, the scare tactic had an effect on other holders in ETF's. as the price drop hit stop loss targets and accelerated the fall.
The run up in the last 10 years i agree had a beneficial support from ETF's for sure, but once big players with ulterior motives saw the way gold was gaining traction as an psuedo alternative world currency, those holders then realised that due to the liquidity of the ETF and the fact they didnt actually have to hold the gold, only front up a percentage of teh price on the futures market, they could use this legitimate investment tool to short the hell out of gold and influence the gold bull sentiment, which it did very effectively.
Interestingly, the news today on bloomberg is the continued and strengthening support for central bank intervention and more easing on its way... 'the big story' as they called it!!
As that was a very, very strong reason people bought into GOLD and ETF gold exposure in 2009 onwards, it will probably have the same effect again, but this time the trust in ETF's has been shaken, and more and more are sourcing physical gold holdings, held by themselves instead of through ETF's and 3rd parties.
at leastthat how i am seeing this pan out.
the ETF's could be used agian to try and take gold down, last night might have been a toe in the water,for example, but the usefulness of this action will become less and less each time its tried as the weaker hands become fewer and those with faith in gold hold steady.
record highs in stock markets are being announced, buit the future reality of them continuing to go up is now goingt o be based on earnings, and that is not goingt o happen. people frothing over german factory orders, but hardly a mention that US consumer credit spending was half what teh market was expecting and as 70% of the US economy is depepndant on cumsumer spending, it's not looking good for any 'actuual' growth...
anothe example... HSBC, yeah they were up, but not on more turnover, they were up on cost cutting, selling operations in other countries and cutting jobs. This is not the sort of action on the balance sheet you see form a confident company