Quote:
Originally Posted by Penn
The market is crashing and contrary to other times of economic stress, so is gold. Can anyone here speak to this counter intuitive situation?
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Penn,
People are selling gold to cover their margin calls. Remember that some of the gold was acquired at <$1,000, so some sales are still profitable. There are others that MUST come up with “margin call money”, even if the gold sale results in a net loss
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Also, remember that there are two (2) gold investment streams (paper and bullion), that are measured in the volume of gold movement, and the sale thus far has been almost entirely of paper.
This is why there is almost a counter intuitive movement in gold prices
SnT.