Gekko

John Dizard

I FOUND one. The only one left. A gold bull, I mean. After the gold market’s Black Monday, on July 7th, all you could hear on the gold street was the mournful sound of the margin clerks pushing their carts and calling for the investors to bring out their dead. The immediate cause was the announcement by the Reserve Bank of Australia that it had sold off most of its gold reserves in recent months, but the slide had been building for months. Any precious-metals freak with his animal spirits intact had already moved over into playing the platinum group metals, either as a straight long or in the form of a spread over gold. That meant that even many of the precious-metals optimists had taken a short position in gold, so the Reserve Bank’s action was just a final boot in the face to a metal already prone in the gutter.

JD

About the Author

John Dizard

Featured Tags

John Dizard

I FOUND one. The only one left. A gold bull, I mean. After the gold market’s Black Monday, on July 7th, all you could hear on the gold street was the mournful sound of the margin clerks pushing their carts and calling for the investors to bring out their dead. The immediate cause was the announcement by the Reserve Bank of Australia that it had sold off most of its gold reserves in recent months, but the slide had been building for months. Any precious-metals freak with his animal spirits intact had already moved over into playing the platinum group metals, either as a straight long or in the form of a spread over gold. That meant that even many of the precious-metals optimists had taken a short position in gold, so the Reserve Bank’s action was just a final boot in the face to a metal already prone in the gutter.