A very imnsightful article on current gold prices.... http://seekingalpha.com/article/341...-from-extreme-shorting-attack-wont-last?ifp=0 .
From the article: Summary * Gold's deep new secular lows are totally artificial. They weren't driven by righteous fundamental gold selling, but by extreme record gold-futures short selling. * Speculators seized a rare opportunity to foment a gold flash crash with an exquisitely-timed epic burst of shorting, and succeeded. This was falsely interpreted as legitimate selling, greatly damaging psychology. *But excessive shorts are guaranteed near-future buying. All those gold futures shorted have to soon be bought back, leading to big and sharp gold rallies on proportional gold-futures buying.
As expected, a very amusing article. :lol: A beautiful description of market dynamics, sentiment and technicals to explain away the price drop - only to then call it "artificial". Well, if it was so artificial, they wouldn't be harping on about it. This is real, and that is why it is so. At least he admits that when he states... "Gold's price is its price, so how the metal got way down here may seem irrelevant." Wish they would make up their mind? What is more fascinating is, within an entire article explaining the technical reasons for price weakness, the author has the gall to say it doesn't stand up to the fundamentals!. What fundamentals you may ask? Well, the only morsel that is on offer is an wild assumption: "... The Chinese government is very shrewd, and knows that if it reports the full extent of its gold buying speculators will pile in forcing it to pay higher prices in the future. So that disclosure was almost certainly only partial." Yep, that's right folks - one single theory of suspicious conjecture. Well, I guess this makes the fundamental theory real? Oh, and BTW... I also found this quite amusing: Allegedly manipulation. Allegedly NOT manipulation. :lol: And this: No shyte Einstein? open your eyes peoples.
