THE PROBLEM WITH GOLD...

THE BIGGEST PROBLEM WITH GOLD IS NOT THE FUNDAMENTALS ...THOSE ARE STRONG...

THE PROBLEM WAS THAT GOLD BECAME SUCH A NO-BRAINER AND "SURE THING"...THAT A LOT OF HOT MONEY GOT INTO THE TRADE...

WHEN THIS HAPPENS A VERY LONG SELL OFF HAS TO OCCUR TO CONVINCE EVEN THE TRUE BELIEVERS THAT THEY WILL LOSE MONEY FOREVER...

THESE SELL OFFS CAN NOT BE SHORT AND SWEET... LIKE WITH STOCKS AND OTHER LOSING INVESTMENTS WHERE THERE IS LITTLE CONVICTION...

THE GOLD BUGS AND THE HEDGIES WHERE TRUE BELIEVERS... AND THEY WILL NOT BE SHAKEN OUT OF POSITIONS QUICKLY...THERE NEEDS TO BE EXISTENTIAL GLOOM AND DOOM FIRST...

BUT HERES THE PROBLEM NO ONE REALLY BELIEVES THE GLOOM STORY....

SO YOU HAVE TO GO TO THE "ITS DIFFERENT THIS TIME" SCENARIOS...  THAT'S WHERE WE ARE NOW...

THIS SELL OFF COULD BE JUST A ROUTINE BEGINNING OF THE YEAR SUCKER FLEECING...WHICH WILL BE OVER BY THE 4TH OF JULY... OR IT COULD LAST LONGER...

THE MORE NO-BRAINER AN INVESTMENT BECOMES THE LONGER IT TAKES TO SHAKE OUT THE WEAK HANDS...  

ADDITIONALLY MANY ARE DUMPING GOLD NOW...IN HOPES OF BUYING IT BACK LATER AT A LOWER PRICE...BUT THEY REMAIN LONG TERM BELIEVERS IN THE POWER OF GOLD TO HOLD VALUE... SOROS IS CLEARLY ONE OF THESE...

THE HOT MONEY NEEDS TO BE FLUSHED...THEN THE SHORTS CAN BE SQUEEZED... THEN STOCKS AND METALS CAN BE REUNITED AS ASSET CLASSES...

ONLY THEN CAN THE FUNDAMENTAL STORY CAN BE RESTORED...