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Just trying to make sense of the gold drop for the last couple of days. I have listed below the factors that I have come across, and I am just interested to hear everyone elses thoughts.
1. Skol may have well been correct all along, and gold is headed to US$800
2. Gold (and mining stocks) have experienced good growth over the last 12 months. With gold up around 30% and a lot of gold mining stocks tripling in value. The bull market could well be coming to an end.
3. With point 2 in mind, it could just be one wave of investors taking their profits, before the next up wave starts
4. Deutsche Bank drove the price down to cover their position
5. The price was driven down by those that had contracts which were due to expire
6. The price was driven down by someone who wanted to sell paper gold and accumulate physical gold.
7. Because it is a holiday in China, it allowed for the sell down of paper gold, limiting the amount of physical gold being purchased at these prices.
8. The likes of Mike Maloney have hinted that there was likely to be one final sell off, where the big players jostle in and out of positions, before the next leg up.
9. The likes of Mike Maloney have hinted that there was likely to be large and swings in both directions, as it sorts itself out.
10. The US Goverment, in connection with the Fed / Central Banks orchestrated the sell off, in order to promote the US dollar, and diss Gold
11, The US Government, in connection with the Fed / Central Banks orchestrated the sell off, by reporting/farbicating strong economic data, in order to make a case for raising rates.
12. The US Government in connection with the Fed / Central Banks orchestrated the sell off, by reporting strong economic data, in order to increase Hillary's chances of winning the election.
13. If Gold Prices are ever going to return back to the free market, where prices are set based on price and demand, there has to come a point, whereby the paper prices get pushed down to a point where miners and dealers refuse to sell it at those prices, or there is just not physical left to sell at those prices.
Obviously not all of these can be correct, and some are going to be more far fetched then others. But just interested to get everyone thoughts, and see if they have any other theories in regards to the plunge.
