McNulty is walking away from SAND https://m.seekingalpha.com/article/1355661
I think he is solely focused on this intentional take down of the price in gold, instead of looking at the long term outlook.
IMO, if anything Central Banks globally are getting all the gold they can get. China and Russia have been buying hand over fist.
I don't think Sean has considered what would happen if ( big if, as in isn't gonna happen), The Fed stopped QE and raised rates. The Fed cannot stop QE because that would lead to the greatest deflationary senario ever. Bernake doesn't want the stock market to crash, since QE is the main driver behind the rise in the DOW and the S&P. I find it interesting that the Dow has hit record highs on light buying volume.
If one were to think about that the US Government right now spends more than it collects. So, lets say QE stops, rates raise and now all of a sudden the US Government cannot even make the interest payments on the 17 Trillion of its debt.
Additionally, Japan is launching the mother of all QE programs, adding to the current US QE infinity program.
I'll give him credit though, at least he admitted to a loss. But, to bail is not only foolish but a very stupid move.
The US will continue to kick the can down the road, it has no choice but not too, because Bernake and co has no other option, but to print us into hyperinflation.
Good luck everyone!