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POST # 9 WHAT HAS HAPPENED TO GOLD?
Recently Gold has dropped and one wonders what happened? The inherent value is still there. The answer lies in the fact that there is a massive margin call occurring. Bernanke?s speech on a slowing of the QE caused the market to slide, margin calls to be made and the traders are selling everything to make the calls. In addition, Goldman Sachs, who is notorious for trading against its clients, has forecast a $1050 price for gold. However, Goldman Sachs is buying gold, China is buying gold, and Central banks are buying gold. Thus, it would be safe to say that this is temporary and that gold will again rise. A cautious investor would hold and continue to buy and dollar average down.