GREY:COLUF - Post by User
Comment by
staolinon Feb 15, 2013 9:50am
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Post# 20994574
RE: RE: RE: minus 500 ABX... plus 4200 CSI
RE: RE: RE: minus 500 ABX... plus 4200 CSI Gold dropping to 1400 for CSI is a 14% cut in gold profit margin for CSI.
For most all other producers it is a 25-35% cut.
But, full production also lies ~1 year away. Also none of that hardly seems to matter in the gold miners. The market moves in unison, all things moving almost at once and almost equally and by equal amounts. We suddenly see short positions on miners increase up the wazoo. Then we see daily precipitous early morning drops in POG as it becomes apparant someone with no regard for maximizing profitability seeks to sell gold contracts. It is also options expiry and Chinese holidays. Also yesterday pieces appeared in every major news publication screaming about Soros selling some gold (after, what, 1 or 2 months ago he bought 'a bunch'). Seems like a good week for a smackdown of all things gold, regardless of any fundamental considerations. Everything to create bearish sentiment has run this week and its counters have been silent. We'll see how far down the momentum it has created will bring it.
My idea for a bottom is a run to 52 week lows. I thought a small chance it would do 3.25... but that was 3 days ago. :) Ultimately Colossus will prevail and so will the PMs, but how much has to be suffered before they have their day?