Theories on the gold collapse
wpr102
Posts: 37
"Update: Yep - it was a leak of a margin hike as just confirmed. Which may very well mean nobody actually had to liquidate, just the herd thundered, as it always does, in the wrong diraction. Expect gold to actually rise on this news.
Everyone knew they were coming... Just not when. Now that the gold liquidation frenzy has struck we still don't know much if anything: who was it, why, and where did the money go? Some rumors have it as a bank in Central, Eastern Europe unwinding massive PM positions, which if true is paradoxically bullish for gold and silver as reported previously, as it means the already tight liquidity situation in Europe is about to come to a head, possibly as soon as this weekend. Others speculate it was a plain vanilla satisfaction of collateral requirements by a big funds who may or may not be liquidating and who have sizable gold positions. Or, the simplest explanation, was it simply an expectation (and leak) of a gold margin hike? For all these questions and more, as well as to vent over anything and everything, use the following open thread.
"
http://www.zerohedge.com/news/gold-liquidations-open-thread
Everyone knew they were coming... Just not when. Now that the gold liquidation frenzy has struck we still don't know much if anything: who was it, why, and where did the money go? Some rumors have it as a bank in Central, Eastern Europe unwinding massive PM positions, which if true is paradoxically bullish for gold and silver as reported previously, as it means the already tight liquidity situation in Europe is about to come to a head, possibly as soon as this weekend. Others speculate it was a plain vanilla satisfaction of collateral requirements by a big funds who may or may not be liquidating and who have sizable gold positions. Or, the simplest explanation, was it simply an expectation (and leak) of a gold margin hike? For all these questions and more, as well as to vent over anything and everything, use the following open thread.
"
http://www.zerohedge.com/news/gold-liquidations-open-thread
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Comments
Rumor was true: Friday afternoon margin hike
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
before they leaked out the word. A very well coordinated attack. How much of this accounts for dollar bullishness? Will dollar margins be hiked shortly as well?
I suspect much of the drop in gold was accomplished by selling off paper and lots of it, not the physical metal. The majority of gold trading occurs in London otc futures markets.
Not all that transparent. These last few hits originated in London, far from the American gold ETF's and the Comex.
roadrunner
Successful Trades: Swampboy,
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
MISH says is wasn't the margin requirement hikes
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>Interesting perspective from a knowledgable commentator:
MISH says is wasn't the margin requirement hikes >>
Interesting. If I didnt know any better I'd swear someone was looking at the "gold vs 10yr yield" chart I posted yesterday.
Knowledge is the enemy of fear