enter the hurt locker

just some observations.....

paulson has reduced his gold holdings last month and we saw what happened to the price

massive bounce seems to have been caused by a bringing forward of demand from India which has new strong restrictions on banks and gold there

paulon still has a massive holding built in the etf, so the etf that took it up looks set to pressure it for a while yet.

Inflation is very low also not a good reason to use gold as a hedge...Plus the yield bubble is in full swing as market rise

Gold forecasts are coming down with forecasts of 1100 usd going by credit swiss, lower than goldmans call last month.......at 1100 usd, say 1200 aud ncm' s margin would be next to nothing so what is a business with debt and all but little margin worth? If its costs were 1087 and it it sells for 1200, well you get the idea,,,,

could it gold fall to 1100 ?,I dont see why not, it rose from under 1000 on the basis of hyper inflation, economic collpase, forthcoming usd collpase, euro collpase, banking collpase and none of that has occurred to date, the usd is is infact stronger when gold was sub1000 so i suppose yes it is reasonable to think that it could happen, after all if the can make gold more valuable than platinum for 18 months, then why cant price can correct....

big uncertainty out there in the gold space imo,,,,,Paulson sitting on huge paper profits and no doubt other glamour hedge funds will seek to capitalize on his situation...

Place your bets now.....

trade safe,,,,possibly in for a shock