Gold eyes biggest 3-day fall in 28 years, investors flee

goingbroke

By Amanda Cooper

LONDON (Reuters) - Gold was set for its biggest three-day loss in 28 years on Monday, as investors fled commodity markets in a scramble to secure cash in the face of mounting fear over the impact of a potential Greek debt default on the rest of the euro zone.

"It shows you that at times of extreme stress, there is not a suitable substitute to liquidity and although gold is liquid by metal standards, in comparison to treasuries, when you get this kind of flight to cash, then it really is cash that counts and that means U.S. dollars," said Credit Suisse analyst Tom Kendall.

INVESTORS RUN

jmski52

Nothing has changed.

I can see it now - "no, no, no - I must have American Dollars. Do not try to trade me gold or silver. American Dollars only!"

They are probably laughing their a**es off in the Treasury Dept. right now.

carew4me

Its all CME margin hikes. Classic head fake.

Weak hands will be fleeced and spor will move up AGAIN.

This happened last March. If you bought the sale , you prospered nicely.

I am thankful for round 2.

roadrunner

Incredible how they routed gold and silver to $1533/$26 in overseas trading last night. Talk about a V bounce. Those with 24 hour trading accounts over trading overseas
got their pockets picked last night. GSR peaking on last night's dip at around 59.0. So far today numbers are back to just slightly under Friday's lows. One has to wonder if the
same pocket-picking excursion is now planned for today or Tuesday?

roadrunner

mrearlygold

Run where?

derryb

It's a flight to safety (cash) as happened in 2008. Metals took a hit then and they'll take one now. Metals followed up with new highs, no reason for them not to do so again. Stackers keep stacking, Paper player keep playing. Consider this an opportunity, just as it was in 2008.

Fundamentals have not changed, they are even stronger now with the rest of world about to experience what the US saw in 2008. Hopefully this time around central banks will weaken and the market will be able to fix a broken economy. If not we will go through it again in 2014. Each time it will be a bit worse until free markets return.

Stackers need to consider themselves savers, not investors.

mhammerman

"no, no, no - I must have American Dollars"

Meanwhile, China has started installing Gold vending machines. Unfortunately, you can only buy $156,000 USD at a time.
China Gold Machines

Man, the beggars are going to be hanging this gold downturn out for the next thirty years like they did for the one in 1980, but just like in 1980, the opportunists deserve what ever fate is handed to them. Fortunately, pre '33 numismatic gold provides a nice insurance policy for volitile PM movements.

jmski52

I do have cash ready, and I will be buying. As usual, it's just a matter of which metal, and when.

RGJohn

<< <i>Its all CME margin hikes. Classic head fake.

Weak hands will be fleeced and spor will move up AGAIN.

This happened last March. If you bought the sale , you prospered nicely.

I am thankful for round 2. >>



Ah, had we all your way with words .......

ksammut

<< <i>It's a flight to safety (cash) as happened in 2008. Metals took a hit then and they'll take one now. Metals followed up with new highs, no reason for them not to do so again. Stackers keep stacking, Paper player keep playing. Consider this an opportunity, just as it was in 2008.

Fundamentals have not changed, they are even stronger now with the rest of world about to experience what the US saw in 2008. Hopefully this time around central banks will weaken and the market will be able to fix a broken economy. If not we will go through it again in 2014. Each time it will be a bit worse until free markets return.

Stackers need to consider themselves savers, not investors. >>



I agree with everything you wrote.

Bear

When the shoeshine boy starts hyping gold to the late arrivals,

then it is time to show some caution. Of Course,If you have

been stackeing for many years, you are a different kind of collector

and will continue to use such downturns to their advantage.late to

the game players always seem to get hurt . They make a lot of money

Then loss even more.

VikingDude

<< <i>Run where? >>



For the hills!

AuAgPt

<< <i>It's a flight to safety (cash) as happened in 2008. Metals took a hit then and they'll take one now. >>



I think you are right here. For curiosity, I pulled up the Kitco daily daily gold prices for Sept - Dec 2008. From Oct 10 to Oct 24, gold swung down from $900 to $712 (intraday was $680 Asia I believe). Very short buying opportunity if one took advantage of it. Fast forward to Jan 26, 2009 and gold was above $900 again.

I think we're in a similar trend now. Gold is already up nearly $100 from last night's lows.

--app

CaptHenway

What did Ms. Cooper have to say this morning?