Well the bears came back on Friday night pushing the USD price below 1400 once again. I did note that it managed to close off its lows despite the collapse in equities in the last hour. At least with fund managers not long in gold, there will not be a rush to sell to pay margin calls.
If the funders believe that physical gold is selling at a premium, then surely funding will be easier. King World News again suggests that a buying panic is not too far away.
Sprott: “It has been my view, and as many of your commentators and interviewees have mentioned, previous to the April 12th to 15th smash, it seemed that there was a clog-up in the delivery of gold throughout the system. As (Egon) von Greyerz mentioned, whether it’s guys trying to get gold out of their Swiss banks, LBMA deliveries being extended, or people who can’t convert their COMEX contracts into physical gold, there were all sorts of things that suggested there was a tightness in gold. Including, of course, the COMEX inventories, the deliverable dealer inventories falling from 11 million ounces to 8 million ounces....
HANG IN THEIR GUYS FUNDING MAY NOT BE TOO FAR AWAY.
MYG Price at posting:
3.7¢ Sentiment: LT Buy Disclosure: Held
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