Casey Research - Millions of Chinese will have to sell their gold and silver. Yeah, no really. Click through if you don't believe me. Here's Louis James:
The world’s biggest gold buyers are suffering a major liquidity crunch. Many won’t have the cash to buy anything, not even gold. Worse, hundreds of Chinese stocks are halted and huge numbers of investors are facing margin calls. That means that many who own gold will be selling because it’s the one thing they can get a bid on.So I guess we can say the bottom is in?
When a large number of buyers are forced to become sellers… well, counterintuitive days like today can make sense.
If I’m right about this, precious metals will slide until the liquidity crunch in China passes. We saw the same thing in 2008.