the comex gold shortage, page-30

Nobody has yet posted that a surprising thing happened last night.

USD POG fell $20, (only AUD10 drop), but GDXJ, GDX, and HUI all rose after first dropping 2-3% each. GDXJ is up 0.73%, GDX up 0.58%, and HUI up 0.59%. This is rather unusual.

My take on these figures is that the October employment and participation figures were not all that bullish for the health of the US economy once one looked at them closely, assuming they are reaonably accurate following the shutdown of their BLS. I think investors were buying goldies on the assumption that the FED will not taper for months, while the POG was pressured down by traders whose stop losses were triggered or they assumed they would be. We will know more on Monday when Asia starts trading again.

Interesting debate on the gold thread about POG. I can not emphasis strongly enough how big an impact the collapse of import demand from India has been. The fact that the POG has held up so well (so far) is indicative of strong long term demand from Asia and will ultimately win out in driving the POG much higher. This will take years. However, in the meantime goldies will be stressed financially and many producers could go under.

I am not a believer in gold heading anywhere in the near term, unless India relents on the imports or inflation takes off in US/Euorpe/Japan, and that seems unlikely.

loki (beware the golden bugs do not bite you)