From Business Insider :
Gold is crashing again today. According to Goldman, the decline in gold is the biggest two-day fall since 1983.
Because gold has such a cult following, this is causing a bit of a crisis of confidence among gold bugs, who are scrambling for any explanation for gold's fall.
Here's a rundown of the things they're saying today.
1. "IT'S A FED CONSPIRACY!"
2. Gold is now 'oversold' It's a buying opportunity.
3. All of this selling is just "paper" gold. "Physical" gold is doing just fine.
4. This gold decline is BAD news for the Fed, since it means deflation.
5. Goldman! (Goldman Sachs year-end target for gold of sub-1,400/oz. they know someone will sell massive SPDR gold trust this year.)
6. This is a bank conspiracy to screw Cyprus.
Pausible reason (Also from Business Insider)
Many have said Cyprus is behind the rout in gold. In fact on Friday, the governor of the Central Bank of Cyprus said the government seemed committed to selling state gold without consulting with the central bank. From Gartman:
"We shall stand by our comments of late last week that if the Bank of Cyprus and/or the Treasury there is being forced to sell gold, then the other countries in trouble shall be forced to do the same. If Cyprus is forced to sell gold, then Portugal shall be too, otherwise the discrimination against Cyprus shall be wholly unwarranted and utterly unfair. And if Portugal is forced to sell, then how can Italy avoid the same fate... or Greece for that matter."
Also,
"The pressure now upon the likes of Mr. Paulson and others who are hugely net long of gold in various manners must be intense indeed. Their margin clerks cannot be amused and must indeed be wholly and utterly dismayed.
"We fear that when NY opens hours from now, and when the public sees the damage done to their accounts, there will be one more violent sum of selling that hopefully shall clear the decks. However, we cannot be certain that that is true and the true believers in gold are clearly under duress."
:thumb:
