Man, it's down 25% in the past 6 trading days. It never even dropped this bad when gold broke down through $1500.
Kip Keen - what Rick Rule got wrong. Quote:
Kip Keen: How has the junior market met your expectations from earlier in the year - quite bullish with you saying it's time to buy - and have you tweaked your vision at all because of the way 2014 has unfolded?
Rick Rule: My experience - depending on how you count them this is my fourth or fifth cycle - is that because we didn't see a capitulation sell-off in conjunction with what I saw as a bottom in July of 2013 I thought we might escape one. And earlier this year I was saying we were going to trade in sort of a saucer shape recovery but channel with higher highs and lower lows, lots of volatility.
It looks to me now there's a 50% chance of a capitulation sell-off, this year, starting very soon. My experience has been in three prior markets that the capitulation sell-off triggers the recovery.
Nobody sees the recovery coming because they're reeling so bad from the sell-off. But the truth is markets move up because the market exceeds expectation and a capitulation sell-off obliterates expectation which means the market can't help but exceed it.
Well I guess now you're getting your capitulation sell-off alright, good and hard!
You know, by the way, that it really is a capitulation selloff, because gold actually hasn't dropped except in US dollar terms, as I said earlier today.
Let's just hope Russia doesn't dump those 1000 tons of gold into the market next April after their currency reserves have collapsed.