13 votes

Gold Bear Trap: The strongest decline in 93 years

The decline of 22 percent from April to June corresponds to the worst three-month performance since 1920.

Strong US Data: (We KNOW better... don't we :)

Positive data came from the U.S. industry and housing market.
New orders for durable goods rose surprisingly strong in May.
Home sales rose more than expected in May - up 2.1 percent

Gold has fallen to its lowest level in nearly three years on Wednesday, as better than expected US economic data reinforced the belief that the Federal Reserve will taper its monetary stimulus in the next few months.

Analysts take back projections
Various analyst firms have (now) significantly lowered their forecasts for gold:
Goldman Sachs has lowered its forecast for 2014: From a 1270/low to to a 1050/low.

At the same time, smart money is dumping everything that is not nailed down.

We are seeing the attempt to repel every last scrap of paper gold, before the bear trap snaps shut.
I believe this is ONE case where ALL those (now) attempting to 'catch' a falling knife....
will be rewarded.
Hang on... and store physical wealth.

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And about that time in the

And about that time in the 20s, the economy had a bit of "trouble".

To climb the mountain, you must believe you can.

Skinny Dipp'n

This is one of the most unmistakable signals that it's filling to burst.


The Emperor ( and slutty hand maidens) is shamelessly BEAR nekked, splash'n and dash'n. .


Speaking of hands, IMO, it would be handy ironically to:

Fold 'em ( that which was once paper, and has since become spindled and mutilated);
Hold 'em ( Hold on, in this instance, to what's real and of substance and grab hold 'cause its in spin.); and also
Walk away (from the table they've set. It's not just a game under their house of cards rules ... it's a dinner invitation. Plucked poultry will be served up after some deep frying.)

Inflows to USA

Strong USD + liquidity/credit crunch in China = Gold leaving China and heading back to USA, right?

SteveMT's picture

....and presents as big buying opportunity.

Metals are not an investment. They are for people who want independence from fiat currency. Thanks.

Every week

I buy at every price, basically. Since I'm a worker who earns a weekly income, I always try to spend around 20% of my earned income on precious metals as a form of savings. Since I buy each and every week, I don't tend to pay too much attention to the price. I do watch ratios of one thing to another and try to purchase whatever has the best ratio that week. A falling metals price and a strong USD is a great combination when you buy incrementally like this. I'll be getting a much larger pile for my dollars now.

SteveMT's picture

Good strategy

Being proactive is much better than being reactive. As the price decreases, you will be able to buy more. Good.

This is worrisome.

Hack, Dennis Gartman, is in the know. His arguments never make sense but it seems a little front running bird whispers sweet somethings into his ear whenever gold is about ready to take a hit.


I guess it means wait a bit before you bet the farm on more gold.

Supposing China dumps treasuries in retaliation, does Gold up?

Supposing China dumps treasuries in retaliation for threats over Snowden but, of course, to get liquidity back into its own dying, failing banking system?

Our treasuries interest rates will spike like crazy. Does that make for a weak dollar, insofar that 0% rates have seen a strong dollar up to now?

In the case of a weak dollar, does Gold go up?

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"