the bubble bursts

The bubble has burst.

It certainly is looking pretty messy with gold closing on its lows, which more than likely precedes more carnage next week.

Right on cue Peter Schiff starts blaming Bernanke and 'his mates in the Fed', instead of looking in the mirror, which is what all goldbugs should be doing right now rather than heaping opprobrium on the USA, the Fed, money printing, the yen, Cyprus, the Comex, ad infinitum.

The last bear market in gold lasted 20 years and there's no reason to believe that this one won't last as long. In the USA it's easy to short gold, double short or even ultra-short stocks or mutual funds and you can bet your ass that's what loads of punters are doing right now.

Goldbugs are hardwired for conspiracy theories and there'll be a plethora of them from here on in, "it's not my fault, it's someone elses I'm losing".

The punters have ridden the gold elevator all the way to the penthouse, now they're going to ride it all the way back to the lobby.

Goldman Sachs predicted much lower gold a few days ago and recommended their clients short gold, and today they've predicted that the S&P500 will rise 20% this year, 12% from here.

Ophir backed the truck up at $1690, and my good buddy Andy took advantage of bargain basement prices to buy at $1550.
Goldbugs can't wait for lower prices to back the truck up, so they'll have plenty of opportunity soon, looks to me like the '5000 year store of value', is about to become the '5000 year store of penury'.

SocGen predicted the chance of a crash in gold at 20%, but I'll bet in light of recent events it's much higher than that.

I'm right and this lot are wrong.

http://bullionbullscanada.com/index.php?option=com_content&view=article&id=21102:these-90-analysts-believe-gold-will-go-to-5000ozt&catid=61:lorimer-wilson&Itemid=138

Maybe I'm due a compliment or two, but I won't hold my breath, you can save the accolades for when gold plunges through $1,000, which it will.