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The sight of big name managers dumping gold likely augurs badly for its near-term prospects, as...

  • Friday, February 15, 11:36 AM ET
    The sight of big name managers dumping gold likely augurs badly for its near-term prospects, as such notables as George Soros, Julian Robertson and Pimco reduced their bets on gold during Q4, when bullion posted its biggest quarterly loss in more than four years. The price of gold is down nearly 2% today, and has dropped 6% since the end of November. (also)
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This news story has 35 comments:

  •  
    There is truth in the saying, "What goes up, must come down."
    15 Feb, 12:21 PM Reply Like
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    Except for printing money.
    15 Feb, 04:50 PM Reply Like
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    But that will stop too when there are no more papers to print orr inks aare finished..
    16 Feb, 03:12 AM Reply Like
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    As far as I can see, it is not that the big boys lost their faith in gold but they are just manipulating gold for the kill. They regularly buy gold and the small guys eventually get convinced and start to jump into the market pushing up the price. Then they'll sell to make the kill. We can only invest in gold for the long turn for protection against inflation. The big boys have the advantage of utilizing fancy computer software to go in and out quickly and sometimes quietly to maximize their gain.
    15 Feb, 12:40 PM Reply Like
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    Agree. The FED wants all ind. investors into risky assets. Buying GOLD is the opposite of this strategy, so they will fight every move up until they stop buying treasuries.

    Here is a stat for you. Last week, over *25%* of ALL trades on the NYSE were program trades, ie institutional money managers. These guys will control overall market as long as they can, until they decide (in unison of course) thats it time to bail. The little guys will be trying to catch the falling knife, but will be too late. GOLD *has* gone down in the last several big market declines but this time could be different if inflation is spiking, eg stagflation.
    16 Feb, 09:30 AM Reply Like
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    Those are not the big boys.....the big boys are on vacation this week...that is why it is down...the G-20 meeting where all the fiat printers are ...they cannot have an alternative currency...period...en... said...but when china comes back on line..They will buy it up
    15 Feb, 12:50 PM Reply Like
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    Agree with you about China, anyway China needs them to strengten their BANKS to get ready to openly compete, also GOLD and SILVER demand aand supply must also be taken into consideration in manufacturing industriy like CHINA compare to how much supply of these metals are available.
    16 Feb, 03:16 AM Reply Like
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    donaldchi, Right on, no one could have said it better.
    The banks/brokers are continually manipulating gold as well as
    equities and want us to sell off our gold and buy their stocks
    at their inflated, manipulated prices before they run them down.
    15 Feb, 12:57 PM Reply Like
  •  
    True but truth will prevails and when that happens Fiat Money and imaginary stock price will have to give way.
    16 Feb, 03:18 AM Reply Like
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    Yep. Watching for a bottom. At first, thought that the bright streak in the sky was the gold index. Back up truck. Fiat money. Nuf said.
    15 Feb, 01:10 PM Reply Like
  •  
    the US Gvt and the EU are waging a war of perception with Gold futures but Central Banks are buying physical Gold.

    Why aren't Central Banks buying Futures instead?
    15 Feb, 01:20 PM Reply Like
  •  
    Even Germany is pulling its Gold back from FED to store in its own backyard
    16 Feb, 03:19 AM Reply Like
  •  
    A lot can happen from Q4 to Q1. Pimco was selling off gold last quarter. But in the January 28th installment of Barron's Roundtable, Bill Gross was recommending GLD as an investment for 2013.
    15 Feb, 01:46 PM Reply Like
  •  
    hmmm

    actually this is somthing of a red herring. The "big" guys mentioned are in fact dumping investments in funds where their gold is not allocated or there are other risks of notbeing able to take possession of the physical gold/silver. they are not getting out precious metals completely they are buying the physical as the price drops
    15 Feb, 02:33 PM Reply Like
  •  
    I can take that.
    16 Feb, 03:20 AM Reply Like
  •  
    that's pretty much old news of course. Have they bought back in, or hold options or futures, in 2013?
    15 Feb, 04:06 PM Reply Like
  •  
    Mohamed El Arian, co-CEO, PIMCO urged viewers to buy gold when he appeared on NBR only a few weeks ago. People, get your facts straight before making any rash decisions: Gold is king now and maybe forever. Buy instead of sell is key!
    15 Feb, 09:53 PM Reply Like
  •  
    Prime time for more long-haul dollar-cost averaging.
    15 Feb, 04:07 PM Reply Like
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    I predicted last quarter that gold would be manipulated down into the 1500 price range and would be only going up after summer of this year. Personally feel this is a good buying opportunity for gold and silver when it does hit its lower levels. I still believe what was told to me by my contacts in China in 2003 that they will go on a gold standard in 2017 and within three years from that time be the number one international currency. Look at all the major countries now utilizing their currency in trade with them (once only being done through U.S. dollars). I still think that Germany pulled all their gold reserves from the Federal Reserve Bank in New York to get ready for this event in the next few years and that they will be forced to go back to the Dutsche Mark and leave the Euro. Sounds negative, but unless the world economies start controlling their debt ceilings, it may well happen.
    15 Feb, 04:07 PM Reply Like
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    I agree to you, while paper gold are getting cheaper BANK are buying Physical gold to back up their banks.
    16 Feb, 03:22 AM Reply Like
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    With all the fiat floating around the world, I am happy when the gold price does come down. It makes it more affordable for the little guy. Nice clear signal to "buy".
    15 Feb, 04:13 PM Reply Like
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    Gold is like religion, some people will buy it no matter what the evidence is.
    15 Feb, 04:17 PM Reply Like
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    It's all a setup to get the little guy to panic and dump his gold and drive the price down even more so the Central Banks can buy it at a reduced price before total fiat currency devaluation and a NWO currency / reserve currency based on gold. Gold is a long-term play.
    15 Feb, 04:18 PM Reply Like
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    Two piles. The paper precious metals and the real deal in the vault. Sold the paper stock at the last high. Kept the physical. Rise. Repeat.
    15 Feb, 07:36 PM Reply Like
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    It's difficult tobelieve that Pimco reduced its gold holdings since in the last recent Barron's Roundtable issue Bill Gross at least twice recommended purchasing GLD, and I think that he is above conducting a pump-and-dump scheme in Barrons.
    Elliot Miller
    15 Feb, 08:33 PM Reply Like
  •  
    There are different sort of "golds" behind what should be GOLD metal. There are futures, there are ETF, there are swaps...etc...All this paper is Finance Game, and you can expect just that, big gambling on it. And a Roller Coaster in price. Someday indeed it will have to meet with GOLD, metal. Then it's gonna hurt, as the papers are not to match with REALITY.
    GOLD is the real real estate.
    What I see is Central Banks are on for metal, even to the point they want to store it in their own basement.
    Where it should have always stay by the way, and we should not be today in that sort of mess.
    In the game of " show me yours, ok, I'll show you mine ", there is always one underway to get stuck up, show it off, and get nothing to watch, in return...Like in the Ponzi schemes sort of... Throughout History, there as been times when the price of Gold, did not move. It could last hundreds of years. Like in England, between year 500 and 1500. There were times, people were NOT speculating on air. Indeed it NEVER crashed against anything else, except TO CORRECT its own abuse. When you check out how much GOLD it takes to buy, a car, a house, 1 acre of farming land, it's basically always the same: that gives you the real price of GOLD. Gold is not to get rich all of a sudden. It's not to get poor, all of a sudden...
    15 Feb, 10:19 PM Reply Like
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    I am not a Gold Bug. But I'm too poor not to have Gold.
    15 Feb, 10:20 PM Reply Like
  •  
    THERE ARE MORE SELLERS THAN BUYERS.....

    GOLD ON MARGIN IS EASY TARGET FOR SMART BIG MONEY

    ALWAYS HAS BEEN

    ECONOMY HAS NEVER BEEN IN THIS SITUATION -- MORE DEBT NOT RETURNING POSITIVE IS DEFLATIONARY....

    WHEN INFLATION COMES---FEW WILL BE READY OR SOLVENT...
    15 Feb, 10:21 PM Reply Like
  •  
    Pimco was selling gold while gold was Bill Gross' number one buy recommendation in the Barron's Roundtable? Really?
    15 Feb, 10:25 PM Reply Like
  •  
    Soros, et al. are simply following Cramer's advice to "back up the truck". Trouble is, their vehicle of choice happens to be a dump truck.
    16 Feb, 10:15 AM Reply Like
  •  
    The big names are probably buying it back right now, and we will find that out in a month or so in order that they can then sell it back to us at another top.
    17 Feb, 04:08 AM Reply Like
  •  
    Any ideas on how low gold could go?
    17 Feb, 04:28 AM Reply Like
  •  
    scott1265 is right, gold is a long term play. i'm in at 960.00 so today i do not care!!! with the current condition of us gov business, i'm very bullish for the long haul, twenty trillion is a lot of debt!!!! let's see if i can get it right. 20,000,000,000,000.00 ???
    17 Feb, 04:30 AM Reply Like
  •  
    I have been a goldbug since early 2005 and bought most of my stocks in early 2006 and silver near $13 and sold half of the position for a $43 average, half of my stock positions sit back near where I bought them the others have done pretty well. I only say this because while I once had a bullish long term view of gold today I no longer do, there is a saying on Wall Street that says "Don't Fight The Fed" and I believe that the Fed or the World Bankers will not and cannot have high gold prices they work against their currencies. I think they will be forced to set the price much lower and change the rules on private investment, I hope I'm wrong but for now I think I will just take my profits and leave the table.
    17 Feb, 08:59 PM Reply Like
  •  
    The problem with your idea trader58 is that the rest of the world is buying....Western Governments might try to cheat...but when China and Russia have enough...I am sure they are going to introduce a new reserve currency...India buys and NEVER sells....the real gold is moving east..and some day there will be a default...a non delivery...that is when the paper hits the fan...yes I think governments will back the banks with new laws...taxes..fees...but the world will let gold go to its real price...
    18 Feb, 01:11 PM Reply Like
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