Buyer beware wrote:
Maserati wrote:The bad thing is that Goldman came out and said that gold has vast headroom.
Goldman is in the gold market big time. Anything they say is an effort to manipulate that market. Do not trust them.
Yes, I know they have a heck of a lot. OF COURSE they're talking their book, but one would think that they do have enough pull to affect things.
Cuban buying gold, he must have read my letsrun posts.
Coach d, it has been tempting to get back into a long position. Look at the market rally today, that super-quick spike upward. To me it smacks of intervention, but it might also be automatically triggered buying, for the same reason you bought.
However tempting it is, though, things are starting to unravel, and by that, I mean the actual fabric of economies. A big question is how the reorganization of national banks (not central banks) and large banks--i.e. "the banking sector"--would affect the markets.
Basel III, with its tiers...it is common knowledge that banks have had a tough time finding assets that meet the criteria of the higher tiers, and so have begun to dumb-down their criteria, with the blessing of regulators. That's fine, as long as bank health is never seriously tested, or stressed; however, large-scale defaults might do it. They will, and have, come from various sources such as sovereign, corporate, housing, EM, etc.
A sector re-organization is not an impossibility, but the likely effect on "the economic system" would be devastation, which would make your long position a weakness. Only time will tell. IMO there will be a shock, and a few, with maybe one significant one, will go under, then the rest will be re-jiggered. I'm not prepared to go long again just yet.