I think what is important to understand is that I still suspect dark hands at play with the gold price on that fateful April 2013. There are many reports regarding the number of short contracts in the minutes on the comex opening that friday and how the terminals were jammed coincidentally. Then the following Monday another attack by the bears on something like yearly supply of gold all in a matter of hours. I have read reports that evidence suggest it came from only a few traders those fateful 2 days.
The US authorities seems to plead ignorance or worse stupid to such games. Apparently there are now starting to investigate rigging and insider trading in the whole system and I am not referring to the Libor scandal. This one is a seperate investigation involving commodities and forex trading seperate to the forex rigging that is the latest on going probe. Maybe by keeping gold down the Feds will look smarter that people are not losing confidence in USD by switching to gold.
Back to gold, I can't see any credible reason why gold should reverse trend. Neither can I anticipate what happens if QE tapering is taken off. All I know is that I can see neither is doing any good for gold so anyone else has a better inclination of what is needed to kick the ass on gold?
If I was a trap bull and I am one but in other goldies, cap raising will be a very reluctant dip into the pocket to keep holding % from dilution. And I know if I was offered SPP then that's because the SI/corporates are not touching them! So not the best place to be.
I look at now charts and I don't see attractive valuation yet to buy. I try not to use foresight and buy with greed. Did that during the start of the boom, rode it and got out at the next attempt post 2009. I am not going to repeat those dark days of despair in 2009 again.
Better to be out wishing I was missing the rally than to be in wishing I avoid any more capital destruction!
SLR Price at posting:
46.0¢ Sentiment: None Disclosure: Not Held
