“I would put some credence in what these two analysts (from Goldman Sachs) said if they actually gave me a fact or two as to why I should not just avoid owning gold right here after it’s down $400 an ounce from its high, but I would prefer if they just gave me one reason why I should short gold at this juncture.
If you read their report, as I did, this is their reasoning: I want to quote these two (Goldman) analysts, “In fact, should our expectation for lower gold prices continue to prove correct, the fall in prices could end up being faster and larger than our forecast.”
So, if you comb through their report and look for one shred of evidence, one fundamental factor as to why they are going to short gold here, you don’t find one. The reason why they are going negative on gold is because it’s not going higher, and if gold goes lower their analysis is it will go even lower, and even faster.
I mean it’s absolutely asinine when you listen to their logic….
“They didn’t speak at all about what’s going on in Japan, the Bank of England, or the Federal Reserve … In Japan, under the regime of Shinzo Abe and the new central banker Kuroda, they have set up the globe for what I see as the next significant crisis, which will be exponentially worse than 2008.
…They are not only setting up the Japanese economy, but the global economy for an interest rate slingshot which is going to send yields from where they are now at about .5%, to 2% to 3% in a matter of weeks. If that doesn’t send down the global economy, I’m so worried about a crash in global equities stemming from the earthquake that is going to occur in Japan.