RE:As I guessed, a death spiralcanoe92 wrote:
There is just no way to stop a decline in gold price as interest rates go up and deflation is rearing its ugly head. I see $800 gold coming. That would mean that EDV would shutter higher cost mines and focus on debt repayment. That could go on for years.
Good luck.
Interest rates do not go up when deflation is the fear. You should take some basic economic reading before posting such drivel. This move down across commodities and pms is solely driven by FX moves and the culprit here is the Japanese Yen. Yes, it is very much possible that there might be some manipulation (highly unlikely that central banks are involved) by bank cartels, particularly Bullion Banks, the pronounced move primarily is because of the fact that Yen is dropping like a rock against the USD which is resulting in Japan exporting massive deflation across the globe. Couple that with leveraged margin calls and tax loss selling, and you have a recipe for disaster for commodities/pms. At this time, the margin calls have started to hit IMO, and it is cascading into a contagion which is hitting the entire complex really hard. As I stated earlier, this is a "forced sell" event and funds have to liquidate at any price level. Bankers know it and they are making it extra painful by drying up liquidity and pulling the bids. This is like a drunkard who started to throw up. He will need to puke it out completely till his lungs hurt and even after that will have a few convulsions left before feeling normal. Stay on the sidelines for now !!.