Seeking Alpha

Goldman: Selling gold a "slam dunk"

  • "Precious metals are a slam dunk sell," once the budget and debt ceiling stalemates are settled, says Goldman's Jeffrey Currie, as he expects the economy to resume its recovery and the taper to commence.
  • Sitting on a panel with Credit Suisse commodity research chief Ric Deverell, both say selling gold is their top recommendation in raw materials in the next year. Gold is currently heading for its first annual loss since 2000.
  • ETFs: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDISLV, SIVR, AGQ, DBS, USV, ZSL, USLV, DSLV, SLVO.
Comments (59)
  • interesting comments. tied in with big massive drop coming for barrick:

     

    http://seekingalpha.co...
    8 Oct 2013, 08:26 AM Reply Like
  • Always like to consult Zerohedge whenever these "must" calls arise. Think I'll be buying a little more on dips even though not a gold bug by any means.

     

    http://bit.ly/15T7smI
    8 Oct 2013, 08:27 AM Reply Like
  • I always like to consult Zerohedge whenever there is positive happy news about anything. Anytime I get out of panic fear mode I head there.
    8 Oct 2013, 09:18 AM Reply Like
  • Does anyone really trust Goldman? When gold prices drop, guess who'll be first in line to buy at bargain basement prices?
    8 Oct 2013, 08:31 AM Reply Like
  • They are trying to talk down though the price does not seem to budge below $125 (in terms of GLD) after visiting the low of $115. Let us see who wins. And what economic recovery? Through $1 T borrowed spending?
    8 Oct 2013, 08:33 AM Reply Like
  • GS and Suisse saying sell gold - very bullish sign. Keep accumulating.
    8 Oct 2013, 08:35 AM Reply Like
  • I remember how they told us that (TSLA) was going to fall back to $80 in July and the stock dropped 15% in a day. Look what has happened to (TSLA) since!

     

    Will be buying up more (GGN) on this Goldman tip. Obviously this is a bullish sign for gold!!
    8 Oct 2013, 12:39 PM Reply Like
  • I wasn't a gold bug until I read this! Goldman, have they ever been right? Their actions always speak louder than their "statements" which are very rarely the same.
    8 Oct 2013, 08:42 AM Reply Like
  • They are out trick us again to see Goldman Sachs should be put of business and the leaders put in Jail
    8 Oct 2013, 08:52 AM Reply Like
  • The jails are pretty full already, might not be enough room for that herd of sociopaths.
    9 Oct 2013, 07:40 AM Reply Like
  • GS must be getting desperate ...
    8 Oct 2013, 08:56 AM Reply Like
  • Does anybody know how much GS is paid when GLD drops following their sell recommendations? Is it $im for each I point drop and who pays them?
    8 Oct 2013, 09:03 AM Reply Like
  • Sell!!! *Secretly buys gold* SELLLLL!!!!
    8 Oct 2013, 09:04 AM Reply Like
  • They pulled something similar with Nokia some time ago. GS placed a "sell" tab on NOK and while clients were selling, GS was buying over 60M shares of NOK at a reduced price, of course.

     

    Oh what a tangled web we weave, when first we practice to deceive.
    8 Oct 2013, 09:09 AM Reply Like
  • And they placed a "buy" recommendation on BB this spring ... and BB flopped.
    8 Oct 2013, 09:14 AM Reply Like
  • Ask yourself:

     

    Why would Goldman give away this advice for free?
    8 Oct 2013, 09:22 AM Reply Like
  • Slam dunk sell gold - what nonsense. Anyone should take analyst opinions as the grain of salt they are worth.
    8 Oct 2013, 09:23 AM Reply Like
  • Goldman Sachs are speaking with a forked tongue , yet again.
    8 Oct 2013, 09:26 AM Reply Like
  • I feel sorry for you guys. Yes, gold will collapse after the budget wars are finished. It is just commonsense.

     

    Good investors don't rationalize.
    8 Oct 2013, 09:28 AM Reply Like
  • Good luck with your over-printed fiat toilet paper currency. Gold and Silver have a 3000 year history of universal acceptance as a store of value - you see gold and silver can't be printed. We don't need your sympathy - most PM believers are comfortable with their choice of insurance against the coming collapse of valueless fiat toilet paper.
    8 Oct 2013, 12:07 PM Reply Like
  • thrash,

     

    Precious metals as Insurance , a hedge, ?
    The insurance and hedge u mention ,Gold for example , didn't seem to be as effective as most think. During perhaps the worst financial crisis we have witnessed the S & P dropped from Jan '08 (1378) to the low on March '09 (666) . In that same time period in Jan '08 Gold was 900 , in March '09 Gold was 892.. Unless you put ALL of your assets in GOLD at precisely the RIGHT moment , I then agree u would have stayed even.. I doubt many did just that , since the mantra is to have only a small percentage ownership in Gold. Having 20% in Gold and not practicing risk management gave one no insurance ..
    That is why I personally have a hard time calling ownership of Gold a hedge and insurance.. It provides neither..
    No matter what asset class you possess the only way to effectively provide a hedge or insurance is to practice prudent risk management .
    Ironic that the folks that want insurance against the next debacle , didn't practice prudent risk management when gold entered and still remains in a bear market. Instead most are holed up in bunkers, reading the latest gold coin magazines, while sending messages to each other to try & define the exact day when the financial world will end .
    8 Oct 2013, 12:32 PM Reply Like
  • The cracks in the system are popping up everywhere - red flags all over. I do not buy the gold has done nothing argument. It hasn't been allowed to find it's true value with all the Fed /GS/JPM paper shorting.The Fed and it's agents have desperately tried to sustain the US $ value and global status and rightly they regard PM's as the mortal enemy. It is not useful to present any argument based purely on history or charts - Never before in international economic structures , have we witnessed the volume of money printing and the levels of both state and private leverage and debt. This unprecedented situation is going to play havoc globally when the systems start to unwind.
    8 Oct 2013, 02:46 PM Reply Like
  • thrash,
    as you make your argument so emphatically ,
    " Never before in international economic structures , have we witnessed the volume of money printing and the levels of both state and private leverage and debt. This unprecedented situation is going to play havoc globally when the systems start to unwind."

     

    And with all of that ,Gold now sits firmly entrenched in a bear market , to disregard that fact demonstrates denial for the facts presented. You have made a case that in fact now weakens the case for gold ownership at this time.

     

    I choose not to believe in the "looming havoc" that the gold crowd thrives on to make their case..
    8 Oct 2013, 03:03 PM Reply Like
  • Fear&Greedtrader fails to realize that a fluctuating system or a really fluctuating (our stock market as a conglomerate) system has a higher probability of hitting 0 than a less fluctuating system (PM). Our stock system at 0 means thousands of investors are SOL...
    8 Oct 2013, 03:47 PM Reply Like
  • Sure the price has been static, only because of the Fed's continuing paper short selling of gold. The very" looming havoc" theory you espouse is very indeed very accurate and it has been precipitated by the most dire and desperate central bank actions. The Fed and many of the G20 nations, have printed themselves into a corner and have no other solution but to keep printing. And you believe this will end well ? I was a gold skeptic for many years ,but red flags appeared all over my screens during the last credit crisis - which is still us but now even worse than ever. the world's debt levels are some 35 % greater now than back then. The international economic system is detached and broken - and central banks apply more of the same bandaids believing it will fix the problem . Only a massive deleveraging will flush the system - and that will see many asset bubbles pop and explode. PM's are the only feasible safety net available.
    8 Oct 2013, 03:51 PM Reply Like
  • That is a wonderful first comment ... that really has no meaning or basis in fact
    8 Oct 2013, 03:56 PM Reply Like
  • Thrash,
    When the fed ratchets down their asset purchase program in '14 , Gold ownership will be the Worst place to be ..

     

    As stated in my commentary above Gold represents no such safety net for any of the looming havoc that u may wish to present ..
    8 Oct 2013, 04:00 PM Reply Like
  • If you're suggesting that there has been no manipulation of the price of gold by the Fed/GS/JPM , then you are sadly out of touch . Nothing more I can add to this thread, but wish you good luck with your beliefs and strategy.
    8 Oct 2013, 04:32 PM Reply Like
  • Thrash,

     

    Feeling is mutual ,,

     

    Best to you also ..
    8 Oct 2013, 04:54 PM Reply Like
  • One day gold was considered a centuries-old store of value and perfect as a stable medium of exchange.
    .
    .
    .
    .
    The next day someone thought up the idea of a "dollar".

     

    Gold will be going strong as a store of value when all of our great-grandchildren are dead.
    8 Oct 2013, 05:10 PM Reply Like
  • The US Dollar is in the throes of dying - about time to.
    8 Oct 2013, 06:40 PM Reply Like
  • It's a "Slam Duken" because they will keep using "Naked-Shorts" to "Bang the Regional Openings and Closes" it's illegal but it's okay for Gold!
    9 Oct 2013, 01:55 AM Reply Like
  • Hmmm

     

    Bottom line is the FED and company must drive the price of gold way down in order to be able to buy it back to give back to all the countries they stole from and still make a tidy profit. These scumbags don't make money based on honest labor and dazzling intellect. These scumbags make money by lying cheating and stealing. And the prime mover for them is their ability to covertly manipulate and in many cases completely control not just individual companies or even sectors but the entire market. In short they are a criminal enterprise. The FED should have been terminated a long time ago. And in truth the Constitution specifically prohibits the existence of the FED. Precisely because of the consequences the FED and the Big 5 are perpetrating on the American people as we speak. Gold will rise and very soon there will be nothing the FED or the Big 5 can do to stop it. But rest assured they will be in exactly the right place and exactly the right time to make mega profits. Which stands to reason since they are responsible.
    8 Oct 2013, 09:35 AM Reply Like
  • also note the timing: "sell gold" when they know the Chinese holiday is over.
    8 Oct 2013, 09:36 AM Reply Like
  • If you want the only "slamdunk" here it is: x>0.
    If you want to make money irrespective of what the humanoids are doing, look at establishing iron condors with GDX-or even more creative is to sell calls and puts against both NUGT and DUST. If you are a long-only type of person, just buy appropriate put protection-and go play golf.
    A major decision-making error is to extrapolate assumptions, which lack conceptual precision to begin with. This is compounded by the inadequacy of our biological clocks.
    When I 'trade' gold, it is not with a refined perspective about fundamental value, but rather the absolute absurd fascination evidenced by the animals in the zoo. And, that makes it easy and very profitable.
    8 Oct 2013, 09:48 AM Reply Like
  • That is very intelligent. The fundamental value of gold plays almost no role in its short term movements of the GLD?
    8 Oct 2013, 03:47 PM Reply Like
  • When Goldman says sell, I buy when Goldman says run I walk When Goldman ever gets it right I'll sell all my positions
    8 Oct 2013, 10:32 AM Reply Like
  • Not too long ago he said oil was going to hit 150 and he was way off.
    8 Oct 2013, 10:38 AM Reply Like
  • Gold is in a 'bear" market , and headed lower , the only question that remains is whether this is a "secular bear" for Gold..

     

    As we head into '14, Gold will find itself in a "toxic" environment as rates normalize and the world economies continue to slowly improve.
    8 Oct 2013, 10:39 AM Reply Like
  • F&G, just curious. Why do you think rates are going to normalize in 2014. I think the Fed is stuck with this ZIRP. I believe that the economy is too weak for them to let rates rise.
    8 Oct 2013, 10:59 AM Reply Like
  • Stray,
    I stated earlier this year that their would be no taper in '13 , so far that has proved to be accurate. However In contrast to what many believe the Fed will indeed start to taper either in Dec '13 or first quarter '14 and with that a slow increase in rates as the global economies improve in sync.. ( i now added Dec , due to the fact that a recent survey shows that 90% polled now believe NO taper in Dec. )
    8 Oct 2013, 11:10 AM Reply Like
  • how can they taper? Their hands are tied and higher rates will crush this nominal housing recovery and make our debt unsustainable, well more unsustainable than it is already. There is a big reason it is called QE infinity. You think Yellen is going to raise rates? That doesn't seem to be her MO, the market rallied when summer dropped out the race.........as a fear and greed trader you should be buying the fear trade which is gold as we speak
    8 Oct 2013, 12:13 PM Reply Like
  • Buy & Hold
    I try to buy equities when i see value and others are fearful , likewise I try and pick price points to sell when i see greed. hence my 'moniker'

     

    Believe what u wish and follow the QE infinity crowd . The Fed will in my view begin to taper in '14 . Im not buying any knee jerk fear reaction that the gold bugs try to sell at times like these . Notice today that the 'fear" has been ratcheted up by the DC crowd today over the debt ceiling circus and Gold , well its flat on the day .. It's struggling when it normally would be flying ..
    Best of luck !
    8 Oct 2013, 12:22 PM Reply Like
  • >make our debt unsustainable, well more unsustainable than it is already.

     

    What are the debt service payments, currently? Something like 3% of GDP?

     

    We have a long way to go before rising rates make debts "unsustainable".
    8 Oct 2013, 01:04 PM Reply Like
  • um no our debt is unsustainable it is currently $148,000 per TAXPAYER, key word taxpayer, those who create the revenue for this government. Sure 325 million or whatever number exist but how many pay taxes to our government? Well only 115 million taxpayers and dropping is the issue at hand. We're losing jobs to technology,overseas competition, and a myriad of other things like obamacare.

     

    Our tax base is shrinking meanwhile our debt is growing, go ahead believe what the government tells you about unemployment. I am in small business america and if there is a job opening I post I have 60-100 applicants in 2-3 days for a job like cashier for one of my stores, it is so sad some of these applicants have college degrees but jobs don't exist. If you can't find jobs and unemployment runs out......you get on disability, did you see 60 minutes sunday? The investigator estimates almost half of those on disability are fraudulent but they have no choice bc of lack of jobs

     

    We are printing at an uncontrollable pace bc we have to in order to keep us afloat, what would happen to the housing market with 12% rate like the 80s? Even 7% rates would crush it and all the realtors would be crying and begging for low rates again. We've become used to it and we won't know how to live without it. I live in a condo building with nothing under $1M and nearly everyone of us has a cheap fixed mortgage at under 4% and we all joke about how this is like free money, would we have bought such pricey condos at 8%? Doubtful.

     

    America is a fighter that knows he's lost the fight but keeps trying to jab his opponents(saying china isn't growing is an example) when we're the ones not growing and if china can grow its middle class, we are useless and if they choose to dump our bonds, it would be good night america.

     

    I will bet you that 1 year from today, gold will rise more on a percentage basis than the S and P? Care to take me up on a friendly wager?
    8 Oct 2013, 03:49 PM Reply Like
  • gold is struggling bc goldman issued a sell on it, lol read below jason burack and those beneath goldman is notorious for this. They did it in april and then it was revealed after that they were short the whole time!!!! It's criminal in theory but legal in reality
    8 Oct 2013, 03:50 PM Reply Like
  • Food stamp participation in US: greater than population of Spain. Disability participation in US: greater than population of Greece. Record BRIC gold inflows and a nonfunctioning .gov police state drowning in debt and fighting bilateral swap agreements among developing economies? Yeah now is a great time to sell gold to the Squid!
    8 Oct 2013, 10:47 AM Reply Like
  • We don't like gold at all, but Goldman saying it is a "slam dunk sell" is quite arrogant in our opinion. Nothing in the market is a "slam dunk", if it was that easy everyone would be retired on a beach somewhere.

     

    *Full disclose we have a small GLD short position & have been short SAND since our last piece.
    8 Oct 2013, 11:29 AM Reply Like
  • Wow, so many comments from people who are too smart for their own good. Good for you folks.

     

    SA, would you really stop putting this garbage on your site? We don't fall for this !@#$% anymore.
    8 Oct 2013, 11:43 AM Reply Like
  • Goldman Sachs circa 2007: "buy CDOs!" (wrong)
    Goldman Sachs circa 2008: "buy oil, to 200$/bbl!" (wrong)
    Goldman Sachs circa 2012 to now: "short gold!" (soon to be wrong)

     

    These GS parasites need to be either taxed or regulated or otherwise put out of business. They free-ride on the full faith and credit of the US government yet take risks with the financial system for their own profit, depending on allies in the US Congress to keep them from being regulated. And I speak as a Libertarian who otherwise hates government. These parasites have captured the US government in the same way Tammany Hall captured NYC 100+ years ago.
    8 Oct 2013, 11:54 AM Reply Like
  • Goldman Sachs says one thing and does another. While they tell the public to sell they are buying hand over fist. Check their holdings of (GLD) and they can redeem for metal. Business as usual over there!
    8 Oct 2013, 12:32 PM Reply Like
  • Jason's right. Read it here:
    http://seekingalpha.co...
    8 Oct 2013, 01:12 PM Reply Like
  • all part of the plan to keep gold down and the dollar up. Wait til the FED minutes come out on Wednesday.
    8 Oct 2013, 01:15 PM Reply Like
  • Actually, raising the debt ceiling to, say, 20 T, would be very bullish for gold.
    It would mean more debt and more gov. payments on debt. Versus a more or less stagnant GDP that would mean more trouble in servicing that debt.
    I guess gov. linked GS wants to anticipate a possible gold price hike on the occasion of a future deal concerning the debt ceiling by convincing people to sell their gold.
    In that regard the article that Quoth the Raven wrote is very useful: it warns weak hands for GS's shenanigans.
    8 Oct 2013, 02:57 PM Reply Like
  • http://bit.ly/1a8hH2n
    8 Oct 2013, 03:05 PM Reply Like
  • @Brian58,

     

    Simply amazing to see folks "advertising" those that have been continually wrong ..If i'm seeking advice about the markets and investing why would i follow their advice now ?
    8 Oct 2013, 03:23 PM Reply Like
  • I sure am glad Goldman Sachs is looking out for me!

     

    What a wonderful, generous, caring Wall Street Bank to go out of their way to make sure the "little guy" does well with his investments.

     

    I think I'll send GS a fruit basket to thank them for keeping me from losing money. You can always count on good old Goldman to share their proprietary knowledge with everyone for free, so that we all get rich in these crazy markets, not just them.
    8 Oct 2013, 03:14 PM Reply Like
  • GS would know they and friends doing so much of the selling. Ain't coming from the physical side where demand for gold remains stronger than ever
    8 Oct 2013, 04:11 PM Reply Like
  • There will be NO TAPER in 2013.

     

    That is an absolute guarantee.
    8 Oct 2013, 05:11 PM Reply Like
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