Gold Declines on Way to Worst Year Since 1981 as Silver Drops

[quaker bill]

40. You seem to have few facts in your possession

Since the peak at $1895 in 2011, gold has fallen to close 2013 at $1205. This is a fall of 36% that has occurred in a fairly steady downward slope. Most of the big players are net short with expectations of prices in the range of $1000 this year.

Aggregate demand, worldwide to include the jewelry market in India and China consumes roughly 50% of annual supply at these prices. It is true that they like gold jewelry in India and China and that market alone accounts for 30% to 40% of the total worldwide demand. That said, all demand only consumes +/- 50% of supply. The excess has been parked in inventory and exchange traded funds. Exchange traded funds have been unloading large volumes for over a year now as people convert to equities (up 30+% in 2013).

You may not call a loss of 36% a bubble bursting crash, just a large correction. Jewelry is my business, I follow this market closely and this "correction" or "crash" is not done yet.

But don't take my word for it, buy and hold metals all you like, I will see you at the bottom with cash in hand.