Gold sale

[MediumTex]

Remember that Goldman Sachs is almost certainly trying to make it appear safe to start short positions in gold.  If GS's past trading patterns hold true, once everyone has short positions in gold it will then come into the market with an aggressive long position acompanied by a bullish research note a few days later and promptly blow out all the short as the price of gold "rockets" back up to where it was a few weeks ago.

It will be interesting to see what actually happens.

[rocketdog]

Remember that Goldman Sachs is almost certainly trying to make it appear safe to start short positions in gold.  If GS's past trading patterns hold true, once everyone has short positions in gold it will then come into the market with an aggressive long position acompanied by a bullish research note a few days later and promptly blow out all the short as the price of gold "rockets" back up to where it was a few weeks ago.

It will be interesting to see what actually happens.

This is why it pays to be a long-term investor and not get all worked up over the day-to-day gyrations of the market manipulators. 

[Libertarian666]

My Cash just triggered a rebalance.  Buying some gold it looks like.

Edit: I add to cash each month and was getting close anyways.

I remember Guy Adami saying when gold unwinds, it does so very quickly.  I clearly remember the $900 gold of the 80's, reverting to under $300 very, very fast.
 

You may need to have your memory tested. Here's what actually happened:
http://www.kitco.com/LFgif/au80-84.gif.
Note that it never got to $900 (although it did get close). More important, it took a couple of years to get down to $300.

[Ariadne22]

You may need to have your memory tested. Here's what actually happened:
http://www.kitco.com/LFgif/au80-84.gif.
Note that it never got to $900 (although it did get close). More important, it took a couple of years to get down to $300.

  Thanks for the memory refresher. 

Actually, in a way you've proved my point - which is - gold unwinds very quickly.  The chart shows gold dropping 41% in two months from $850 down to $490.    We held a lot of physical gold at that time, bought very cheap, which we didn't sell.  One day we needed the money, had to sell, and by then gold was in the 300s.    Lost opportunity to capitalize on an unexpected windfall.  I've never forgotten that lesson or those years. 

[Libertarian666]

You may need to have your memory tested. Here's what actually happened:
http://www.kitco.com/LFgif/au80-84.gif.
Note that it never got to $900 (although it did get close). More important, it took a couple of years to get down to $300.

  Thanks for the memory refresher. 

Actually, in a way you've proved my point - which is - gold unwinds very quickly.  The chart shows gold dropping 41% in two months from $850 down to $490.    We held a lot of physical gold at that time, bought very cheap, which we didn't sell.  One day we needed the money, had to sell, and by then gold was in the 300s.    Lost opportunity to capitalize on an unexpected windfall.  I've never forgotten that lesson or those years.

I bought silver on margin on the day of the top in 1980, and had to borrow money from my mother to meet the margin call. 

What that taught me was never to use margin, a lesson that has served me well ever since (like in the last couple of weeks).

I also always maintain enough dollar liquidity that I don't have to sell at an unfavorable price, so I can ride out even such violent manipulations corrections as we have seen in the past week or so.