Gold slumps record $100

goingbroke

NEW YORK (Reuters) - Gold prices slumped more than $100 an ounce on Friday, the biggest fall on record in dollar terms, as traders sold to cover losses, while global stocks edged up on expectations the European Central Bank will take new measures to contain the euro zone debt crisis.

Gold slumped more than 6 percent at one point -- its biggest drop since the financial crisis in 2008

pmcollectour

Gold chart still looks very nice to me.

And anyone who bought gold last September at 1,300/oz is still feeling rather comfortable.

Anyone who bought in August is another story

pursuitofliberty

Okay, maybe I'll post it here since I've been thinking it this morning


It looks to me like this week was a paper sell off. Nothing more than paper Traders with "parked/play money" in PM-related ETF's and other paper Gold/Silver instruments running for the door about the same time. Margin calls and/or target prices started coming early in the week for their stocks and once the first wave hit, they all followed suit, "protecting" and raising "cash" to cover. A lot of traders have been getting into PM's ... it would be nice to see some of them shaken out.

The margin increase on Friday, IMO, is a good thing ... although won't help prices right away. It will at least thin the herd a little on the CRIMEX paper side. It would be nice if they eliminated the ability to buy PM-related ETF's on margin, but I think I'm dreaming there.

I do suspect when the dust settles, the initial bounce may be strong ... and the only way back in for many of them will be for more than where they sold. Where that bounce really is, and where we set a new base/bottom ... I don't know.


Even though I could almost smell it coming, I committed to buy some physical last week/weekend, and hope to do the same this weekend/over the coming week or two.


Hard to watch, but an opportunity to stack more