# Major Gold Player Makes A Move



## LastOutlaw (Jun 1, 2013)

http://www.kitco.com/news/video/sho...or-Player-Dumping-Gold-Frank-Holmes-Weighs-In

B]*A Major Player Dumping Gold? Frank Holmes Weighs In*[/B]
Jul 20, 2015
Guest(s): Frank Giustra Co-founder, The Clinton Giustra Enterprise Partnership

Gold prices ended the U.S. day session solidly lower Monday and Comex futures hit a five-year low of $1,080 an ounce, in Asian trading. Prices did bounce off the lows by the time U.S. trading started, but still traded solidly lower on the day. Kitco's spot gold was last quoted down $28.90 at $ 1,104.40 an ounce. "The gold price is bouncing up and down and investors have to make sure they are strapped-on well to enjoy the ride," said Frank Holmes, CEO of U.S. Global Investors in an interview with Kitco News Monday. Holmes suggested it was a major player dumping gold. "Recognize this was a 2.7 billion dollar notional value trade that hit the market about 18 months ago - last month the investigation by Comex showed it was a high frequency trade and they spanked people by slapping them on the wrist. You can do this in financial markets as long as the price of commodities falls down," he explained. Holmes added, "it is very distressful for investors but a great short term opportunity to reposition your portfolio." The big downdraft for gold started in Asian trading, gold prices swiftly plummeted to the $1,080.00 level before rebounding to trade back above $1,100.00. Holmes said his focus is now on this week's China flash manufacturing PMI. "Hopefully we see it run over 50 - this will turn the commodity trade in a positive note," Holmes said. When looking at PMIs, a reading of 50 or above indicates manufacturing expansion, while a reading below 50 indicates a slowing economy. Kitco News, July 20, 2015. (show less)


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## hiwall (Jun 15, 2012)

I have decided to boost my silver a little and I am watching the market closely and waiting. I decided I had too much cash on hand and I will turn a little into silver (I don't have enough to buy gold!). The PM market has been getting lower the last couple weeks. Could go up at any time but I am hoping it will go down a little more yet.
Everyday I wonder if our time is running short. Those of you that have been putting off ANY of your prepps I urge you to consider filling in soon(what can it hurt?).


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## Tweto (Nov 26, 2011)

I do expect Gold and Silver to still drop some more. Especially Gold!

There seems to be a history of PM's dropping before and during a market collapse and then climbing after it's over.


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## bkt (Oct 10, 2008)

If I read right (in another article) this was dumping paper gold, not physical. A few more of those and maybe we'll finally see decoupling from paper to physical.  They can only keep the prices suppressed so long; eventually they will rise to where they should be.

In the mean time, it's a heck of a great buying opportunity. I'll be picking up more today.


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## LastOutlaw (Jun 1, 2013)

bkt said:


> If I read right (in another article) this was dumping paper gold, not physical. A few more of those and maybe we'll finally see decoupling from paper to physical.  They can only keep the prices suppressed so long; eventually they will rise to where they should be.
> 
> In the mean time, it's a heck of a great buying opportunity. I'll be picking up more today.


Yes, paper gold. Could be for a number of reasons. to make the price drop and get others to dump theirs so it can be bought back at a lower price or as you mentioned paper and physical are coupled. this makes it possible to sell a bunch of paper then turn around and buy back in physical once the price drops.

Other articles say it should drop more but not much as it bottoms out.


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## hiwall (Jun 15, 2012)

> possible to sell a bunch of paper then turn around and buy back in physical once the price drops.


Naturally this can only be done if the physical is actually available. At some point I think (guess) there will be shortages of the physical gold and silver.


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## bkt (Oct 10, 2008)

hiwall said:


> Naturally this can only be done if the physical is actually available. At some point I think (guess) there will be shortages of the physical gold and silver.


Right, exactly. That's the decoupling I mentioned. When the flood of paper gold dwarfs the availability of real physical gold and enough people want to take possession of the physical stuff, we run into a situation where sellers demand a price FAR higher than the spot price. That will force de facto PM prices up nearer to where they should be and take the wind out of the sails of slimeballs dealing in paper metal.

Bumping into reality can really ruin your day.


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## db2469 (Jun 11, 2012)

Personally, I won't sell any even at $2000/oz ...mine is just in case gold ultimately wins out over fiat currency...and if it never does, so be it...


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## LastOutlaw (Jun 1, 2013)

db2469 said:


> Personally, I won't sell any even at $2000/oz ...mine is just in case gold ultimately wins out over fiat currency...and if it never does, so be it...


I have some silver I bought at a much higher price than it is at now. If I had bought it as an investment I would feel real bad right about now. However since I bought it as a hedge against inflation I don't feel bad at all.
It is insurance and simply having it is comforting.


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## Marcus (May 13, 2012)

hiwall said:


> Naturally this can only be done if the physical is actually available. At some point I think (guess) there will be shortages of the physical gold and silver.


The only thing is COMEX changed the rules a while back to allow settlement in cash instead of in gold/silver. The first time they have to enforce that rule due to a lack of inventory we'll see a huge rise in the price of physical and a de-coupling of paper PM assets from physical PMs.


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## bkt (Oct 10, 2008)

Marcus said:


> The only thing is COMEX changed the rules a while back to allow settlement in cash instead of in gold/silver. The first time they have to enforce that rule due to a lack of inventory we'll see a huge rise in the price of physical and a de-coupling of paper PM assets from physical PMs.


Sure, COMEX is a major player in the suppression of PM prices. Only by allowing settlement in cash can they print paper representing PM and trade that paper as if it were the real thing. The paper is worth nothing and the physical is worth far more than the current prices indicate. So those dealing in paper get rich as long as they sell their paper before the music stops.

Rehypothecation of a small amount of physical metal is common, unfortunately, and many people have already been burned badly when they try to take possession of their metal. So let this serve as a reminder to everyone here: ALWAYS take possession yourself of precious metals. NEVER trust anyone else to hold them for you - including your bank's safe deposit box.


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## db2469 (Jun 11, 2012)

Gold is sinking fast now....I'm a jeweler so I welcome it as I will pay less for merchandise...but I won't be sending in any scrap gold for awhile!


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## LastOutlaw (Jun 1, 2013)

Continues downward, is supposed to continue downward. 
Gold this morning at $1087.00
Silver at $14.71


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