Gold Dipped because . . . Traders on the COMEX learned that Seabridge, Tudor, Pretium and others exploring or mining gold in the Golden Triangle might dump like 100,000,000 ounces into the market in a few short years!!!
Okay. That's not the reason for the slide; don't you wish it was?
Actually, a drop in the POG often happens that when what I call the Dollar Protection Team (cousins of the Plunge Protection Team) sees gold rising too high too fast, they move to protect the dollar driving down the price selling gold on the thinly traded Asian markets overnight and the COMEX follows through the next morning. This slide started in Asia.
Anyhow, there go all my paper profits in call options I bought on IAU (the poor man's GLD). But I'm not worried; they don't expire until December. Hopefully gold stocks took enough of a dump to bring in bargain hunters today. Good time to buy Barrick and write call options if you want safety; collect the premium and small dividend and probably a small profit when the stock is called away.
Remember, the shorts have to cover and bargain hunters will hunt.
Don't you all wish I knew what the hell I was talking about???? This is what happens when you have insomnia and start typing at 5:40 a.m. Sometimes it ain't pretty.
Mark