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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Tommaso who wrote (19787)10/19/2009 5:40:00 PM
From: Nevada9999  Respond to of 29622
 
You may be right. I think they are fearful of sudden moves in gold to the upside. One potential cause is inventories dropping towards zero. I hope no one actually deposits gold, but this might discourage taking it out. After all, the Chinese and Germans just decided they would prefer to have possession of their gold in their own vault. Smaller entities may be thinking increasingly the same way.

Margin rules invariably seem to favor gold shorts, but this looks at least partly like a defensive move.