There must be a good explanation for gold's $50 drop today...
The other day, I had a short discussion with TMFSinch on one of his blogs, alluding that PM ultrabulls might be poor losers.
Namely, it seems to me every time gold drops (or doesn't go to $5,000 as they are predicting), the permabulls here on CAPS come out with posts like: "Fed manipulating Gold", "Big Western Banks manipulating Gold", "Pekingese dogs at Westminster Show manipulating Gold", etc.
Today, I expect no different. Somebody somewhere in the world is manipulating gold. I just wonder who it is this time.
Also, I see from this post here, PM ultrabulls are counting on gold's next leg up (meaning gold will reach a new all-time high on the next run).
I, personally, am not so sure about that. I actually think I'm definitely going to start shorting gold here on CAPS next time it hits $1750 - $1800. I'm thinking gold might have another run left in it, but it's not going to be an all-time breaking (by a significant $ amount) run.
I think the gold permabulls are leaving in the same la-la land that the housing-stocks permabulls lived in 2005-2006.
I can almost hear (if I haven't heard them already) the gold permabull saying stuff like "Buy gold, they are not making any more of it", "Buy gold, it will always go up in value", "Buy gold, people will always need something to live in", etc.
I'm saying this just to make a point that even though your investing premise might be right (current monetary policy/mess, etc.), the market you are investing in still might crash.
I don't think gold will go as low as some gold permabears are predicting, but I think will go low enough to make some of the people who bought (or will buy) near the top feel not so great about themselves.