Gold and Silver Hit Multi-year Lows

Massive $20 Billion Paper Gold Sell Orders Trigger Stop Loss Selling And Unfounded Panic

I had staggered stop loss orders in place that sold almost all of holdings on the way down, so I’m still in the black, but it’s been ugly for people who bought in the last year or two.

4 Responses to Gold and Silver Hit Multi-year Lows

  1. Sean says:

    Best guess as to root cause is fear of a widespread institutional liquidation.

    e.g. Cyprus now, but Italy, Portugal, etc. later?

    If that’s the case, and the “money printing” has not yet caught up with the supply/demand curve, there is a bottom where we should buy.

    How do we calculate that bottom?

  2. Les Jones says:

    The Cyprus thing was batted around. I don’t really buy it. Lots of central banks have been buying way more gold than Cyprus was selling. It doesn’t make sense to me.

    (And in general the popular explanation for why a stock or what have you went up and down is often silly. The more you know about the investment, the sillier they tend to appear to you.)

    The link above suggests the sell-off was because a giant $20 billion short pushed down the market and triggered stops, which cascaded down and triggered more stops.

    As far as where to buy, that’s always hard to say.

  3. Richard Wisner says:

    I’m sorry for your loss, Les. I was up to here in silver in early 1980 so I completely understand.

    I recommend you take a look at Jim Cramer’s Mad Money episode tonight 4/16, particularly the “Off The Charts” segment. There is a very convincing picture drawn of where gold may go in the near/intermediate future.



  4. Les Jones says:

    Richard, I’m down from where I was at the peak in 2011, but I sold on the way down to keep some of the profits, then bought back in, then had stop limits on the way down to lock in the profits again. I’m still way ahead on gold and silver.