Friday, May 10, 2013

get rid of GLD

Quick note: large holders of GLD can request delivery of physical gold (100,000 shares minimum or almost $14 million) and there is evidence they have been doing so and almost all of the physical gold they store is gone leaving only receipts for gold they have leased out.   The short squeeze in gold is happening.  It's time to get out of GLD and into physical gold or other assets.

Also regarding the price action in gold lately, if the bull market in gold follows elliot wave pattern, I'd expect there to be another big leg down to nearly $1000 before the final bubble occurs.

On the bright side, this dip in the price of gold gives you a chance to sell your GLD and buy physical and pay less tax than if you made that exchange at a higher price.


Anonymous said...


I assume you have the same philosophy on silver?


Gerard said...

Paper silver can be naked shorted, just like gold. Gold has some issues even in physical (tungsten counterfeits, allocated gold being leased out, etc), which is less of an issue with Silver because it gets consumed industrially

Anonymous said...

Yup...been a holder of physical silver for awhile. I figure it represents a smaller "denomination" when we are in that transition period some day to a new fiat currency (ie new Bretton Woods agreement perhaps?)

Anyway...curious watching the Bernanke today. More and more talking heads seem to think the Fed is trying to hint at winding down QE Infinity. Not even a remote possibility by year end in your opinion? There is public opinion to contend with and even the average Joe on the street is starting to balk at the Fed's actions...even if it's not understood entirely.

Gerard said...

no way they can end QE

Anonymous said...

I take it that the past two days (19 & 20 June) are the markets way of punishing (warning) Bernanke for his "tapering" comments?

Gerard said...