@Hisah. The United States rose from near bankruptcy in 1896 to own 76% of the world's gold in 1944. Along the way, Britain hit its peak as the economic superpower and by 1931 has to request for a 6 month moratorium as Europe defaulted on its debt. The U.S. was the largest creditor in the world as China is right now. During WWII, the U.S. homeland was unscathed and it therefore became the arms dealer and food supplier to Europe.
We are witnessing a shift in economic power from the West to the East as the latter is the gold buyer on dips. Common sense would dictate that the Westerners would be buying gold to hedge against government. However, capital does not feel safe in the West. The thirst of government tax men grows day by day. Furthermore, capital recalls the institutional confiscation of gold carried out by FDR and would rather buy common stocks and real estate, much less prone to confiscation.
[quote=hisah][quote=karanjakinuthia]@Hisah. This what we call a waterfall event in sentiment. Not a bull to be found in gold?
Volatility in the remaining part of April and May will remain high. The market will bottom once the selling pressure is complete and swing in the opposite direction as long term buyers such as Hisah flock back in:
http://www.bangkokpost.com/news/local/345752/gold-buyers-rush-in-as-prices-plunge
http://www.chinadaily.com.cn/bizchina/2013-04/17/content_16413827.htm
http://www.bloomberg.com/news/2013-04-16/gold-bears-scarce-in-india-as-selloff-lures-shoppers-to-bazaars.html
[quote=hisah]@kk - have a look at $BPGDM - bullish gold miners index. [/quote]
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Yep. Not a single bull in sight. What a waterfall moment as negative sentiment goes through the roof and yet capitulation hasn't happened!
I'm trying to read the tea leaves and I can see this is a veiled attack at asia. China has gold/silver accounts for the public. At capitulation phase those gold/silver deposit accounts will have taken a sizable haircut.
Is the USD hegemony sending a message?
The value of USD, €, £ or yen now is so badly off than pre GFC, yet these fiat currencies are now getting muscular vs gold/silver/platinum.
What a waterfall or fat-tail moment... Such discounts take ages to come by. [/quote]
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