Monday, July 20, 2015
Morning PM comment
So gold got monkey-hammered last night, with a massive downspike as stop losses were hit, followed by a halfway recovery. It's probably some big fund trying to short gold into the dust, I'm not worried. Gold doesn't go to $1000, period.
Anyway, importantly, silver and platinum were monkey-hammered at the same time. But as of a bit after 9:30, silver's chart is like this:
I.e., overnight it essentially lost 5 cents, which is basically nothing.
Platinum similarly is only down $6 from Friday close at this moment, which is good considering last night it spiked down $50.
So silver's and platinum's lack of collapse suggests to the entire world that gold's drop is a simple paper attack on one single metal, and what with the entire investing world being 90% short gold right now it's going to take a heck of a lot of new money to push it farther down.
And those shorts will have to close at some point, and sorry but the majority of gold investors aren't going to be selling right now because that would involve taking their physical jewelry and physical bars out of storage and to a physical buyer.
So I'm not worried, but I'm happy to see the potential for a big long position soon.