by Julian D. W. Phillips, Gold Seek:
Gold and silver recently hit their lows –$1,180 for gold and $18.50 for silver—after being hit by tremendous persistent selling from the SPDR gold ETF and then a major, well-engineered bear raid from Goldman Sachs, J.P. Morgan Chase alongside several hedge funds. This entailed the selling of over 1,000 tonnes of physical gold in less than three months. The bear-raid in mid-April involved around 500 tonnes of this. In a market where the net supply is just over 10 tonnes a day, this wave of selling overwhelmed demand, initially and caused the precipitous fall in gold and silver prices.
The falls were attributed to all sorts of factors such as lower growth in China, the U.S. and the rise in interest rates, the potentially better returns in equity markets, etc. With the holders of gold in the SPDR gold ETF mainly U.S. institutions, measured, sad to say, on their short-term performance, the demands to move away from gold (which had stagnated for around 18 months) to equities caused the SPDR selling of around 500 tonnes over the last three months.
Please follow SGT Report on Twitter & help share the message.