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The Shakeout In Gold Isn't Over

I hate to be the bearer of bad news.

But this shakeout is nowhere near over. So far it is a multi year crash, and it looks like the crash could continue for a few more years.

I know there are people here who are blind to this - willfully so, they sacrifice a clear view of reality for their love of go(l)d. This is just a little reality check about the current shakeout. It's not over.

Gold shakes and shakes and shakes. It shakes out the greedy. It shakes out the evil. The shaking is a process of purification. Gold will not allow itself to be owned by evil men. Gold will always make her way out of vipers dens into the hands of the just and good.

Shake shake shake.

Don't fall off!

Shake shake shake.

Or should I bail instead?!

Shake shake shake.

Gold won't tell you what to do. She'll force you.

Shake shake shake.

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What is money?

If you dabble in the money market, understand the paper vs. metal trade better than the fear vs. greed trade.

Bad news?!

This is great news to people who want to buy-buy-buy and hold.

Keep goin' down, baby!

If you don't know your rights, you don't have any.

That is true

Just don't buy too soon, and too much at one time.

It is no fun catching a falling knife.

No one knows where the bottom will be, so keep dollar-cost averaging your way in.

Do not confuse The Diamond Dog's bearishness with negativity towards gold.

Quite the contrary. Gold is money. You want as much of it as you can legally get your hands on.

Not just legally, but comfortably. Because at the end of the day, you can't eat it, and in our fiat currency world, you can't spend it, either.

But make no mistake, gold is money, and gold will always have value.

The Diamond Dog is a real cool cat. | Reporting on the world from an altitude of 420.

IMO, the average investor

IMO, the average investor basically bought into the idea that QE and government spending was going to cause massive inflation, and that gold would jump as a result. They were convinced that the economy was going to collapse and that gold would be a great hedge. Then, the big hands got involved and bid up gold's price, causing the average investor to feel his views were validated and buy up more.

The media helped perpetrate this. How many media pundits screamed about buying metals, not realizing that there is little link between metals price and the value of the dollar/cost of goods/inflation? How many people didn't understand the difference between money printing and money borrowing? Or what QE actually was, and how credit creation occurs?

Now, the big hands are letting their gold go, and the price is dropping.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

BWAAHAHAHAHAHAHAHA! I suggest

BWAAHAHAHAHAHAHAHA! I suggest you look at who now has a corner on the gold market. and that corner is a long corner. This post is good for a good laugh.

Still laughing, are you SIERRAHPBT?

Down $130 in less than two weeks, and way more to go.

Time to double down, man! Double down and bankrupt yourself.

The Diamond Dog is a real cool cat. | Reporting on the world from an altitude of 420.

yep, really laughing

lol.....

lol.....

Uh...this shakedown is allowing rich to get richer

The people benefiting from the current price smackdown are not exactly the "just and good". The big banks, particularly in the East, are scooping up physical gold. The usual suspects are getting richer from paper gold manipulation in the comex. The GLD is being drained of physical holding by the big players who own more than the minimum of 100,000 shares, while small scale investors in the GLD are left holding paper. All that most retail investors have gotten over the past two years is the shaft.

At this point, the price of gold is at or below what is costs many miners to produce it. Junior miners are being driven out of business. Price can't keep declining this way for much longer, but I won't try to make a prediction.

We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.

-C. S. Lewis

Re: GLD

Re the alleged GLD drain, this guy:
http://screwtapefiles.blogspot.com/2013/08/a-different-view-...
has done some *amazing* work collecting every record he can find of identifiable bars, and putting together a database that lets him do some real investigative work about the alleged drain. If anyone disagrees with his conclusions then the tracking database is there for the analyzing.

Seriously, whatever your immediate reaction might be about how this effort could fail to discover the truth, read him first. If there's a mode of skepticism he hasn't addressed yet I'd like to hear about it. He's thorough and methodical and also one of the good guys -- just happens to be a good guy who is basing his conclusions on hard data.

Interesting data on GLD

very informative, thanks

If this is a multiyear crash of gold

then the Chinese will own all gold in the world. They are importing 200 metric tons every month, India is doing the same.

All bullion banks are running out of gold.

Gold standard: because man can not be trusted to control his greed

This chart is old. Gold is

This chart is old. Gold is around 1,350 now. This is just a simple correction that will last a few months at most. This can't last years because both Mike Maloney and Jim Rogers said 2015 -2017 is the end of the gold and silver bull market.

Michael Nystrom's picture

It can't last years because someone said it couldn't?

Do you write for the Onion?

Good grief.

To be mean is never excusable, but there is some merit in knowing that one is; the most irreparable of vices is to do evil out of stupidity. - C.B.

No, real economists. Gold's

No, real economists. Gold's peak is not that far off.

I suggest you go read what I

I suggest you go read what I posted on the metals thread.

Harry Dent said Gold is going to sub $800 level. He's an

Economist and he even wrote it!

"It is difficult to free fools from the chains they revere".
--Voltaire

It's hard not to be a menace to society when half the population is happy on their knees. - unknown

So is Paul Krugman.

So is Paul Krugman.

Só what!

Krugman is a douche bag, Dent much less douche baggy!

"It is difficult to free fools from the chains they revere".
--Voltaire

It's hard not to be a menace to society when half the population is happy on their knees. - unknown

Gold's at 1335 now

Up $55 from the price on the chart when you posted this.

It is only going up from here. Next stop, $1,400.

allegory - ˈalɪg(ə)ri/ - noun - 1. a story, poem, or picture which can be interpreted to reveal a hidden meaning, typically a moral or political one.