Gyroscopic Investing

MediumTex wrote: 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.

Ariadne22 wrote:

Bean wrote: 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.
 

Libertarian666 wrote: 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 wrote:

Libertarian666 wrote: 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.