Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

by Guest Mon Apr 15, 2013 6:36 pm

Urgent: Historic Gold Crash. What To Expect Next ...

by Larry Edelson

Dear Aj,

I'll get right to the point ...
First, gold's historic collapse — losing as much as $233 in just the last four trading days, a whopping 14.7 percent ... and $565, or 29.44 percent since its high in 2011 — is NOT over.
Second, expect a bounce to soon occur, but don't buy into it. If you do, you will likely lose a bundle of money as gold heads even lower.
The same advice applies to silver, to copper, to platinum, to palladium, to crude oil and more. Their interim-bear markets are not over, not by a long shot. Ditto for natural resource stocks.
For now, I'll confine this update largely to gold. I want you to have the important system support levels for gold from my trading models. That way, you will have a road map.
I'll cover these technical levels first, then I'll briefly review the fundamental forces driving gold lower.
Gold's major support levels now lay at ...
— $1,380. Gold is currently below that level.
— 1298.70
— 1244.90
— 1160.90
— 1028.40
— 993.90
Each of the above levels should temporarily hold once they are hit. But the operative word is "temporarily." Based on my system models, gold will likely not bottom until it hits major long-term support at $1,028.
As for overhead resistance, there is plenty. For any bounce that soon comes into play, expect resistance to form at the $1,380 ... $1,412 ... and $1,458 levels.
As for the fundamentals driving gold (and other commodities) lower, they are the same forces I've been telling you about for many months now ...
First, central bank money-printing has lost its impact on the markets. Why? Very simply put, there's too much bad debt floating around the globe and there's simply no way central bank money-printing can offset it.
Second, austerity measures in Europe and the United States are also overpowering the inflationary impact of money-printing.
Third, and most importantly in my view, the Cyprus confiscation of uninsured depositor money has completely turned the world upside down. Money is no longer safe in a bank in Europe.
That, in turn, is causing hundreds of billions of dollars to essentially go into hiding. But not in gold, which is subject to confiscation, real or imagined.
Instead, capital is largely going into cash, which is also bullish for the U.S. dollar, since it's still the world's reserve currency.
Fourth, Japan's new aggressive policy to devalue its currency is also not bullish for gold. Japanese investors are plowing their money instead into their own stock market, and my sources tell me loads of Japanese capital is also fleeing to our stock market.
In fact, much of the selling in gold originated in Japan. It was just a week ago that gold hit a record new high in yen terms, due to the depreciating Japanese currency.
But instead of lining up to buy gold, Japanese investors queued up at gold dealers around the country dumping every ounce of gold they could get their hands on, even melting down jewelry.
Why? Japanese investors don't trust their own government, and if push comes to shove with North Korea, Japanese investors want their money liquid and mobile. That means cash, not gold.
In essence, we are seeing what I call "Money on the Run" and its momentum is picking up, in Europe and in Japan. Panicked capital is going into hiding, but in cash and equities in the U.S. and Japan, not in gold.
Later, when everyone realizes that Washington has many of the same problems that Europe and Japan has, all of the above fundamental forces will flip back to the bullish side for gold.
But that time is not here yet.
In my special Money and Markets issue of April 3, and in earlier columns, I suggested hedging any metals or mining shares you owned via purchases of the inverse ETFs, the ProShares UltraShort Gold ETF (GLL) and the Direxion Daily Gold Miners Bear 3x Shares (DUST).
I also recommended the ProShares UltraShort Silver ETF (ZSL) for a play on silver's downside.
If you acted on any of those suggestions, you're sitting pretty. Hold those positions and stay tuned for further updates.
Best wishes,
Larry
P.S. The April issue of my Real Wealth Report publishes this Friday. Don't miss it! If you're not a subscriber, simply click here now to join. At a mere $89 for an annual subscription, it's a bargain.

by Guest Mon Apr 15, 2013 6:41 pm

"Later, when everyone realizes that Washington has many of the same problems that Europe and Japan has, all of the above fundamental forces will flip back to the bullish side for gold.
But that time is not here yet."

by **Kevind53** Mon Apr 15, 2013 6:51 pm

Good article, definitely some food for thought ... thanks AJ

by Guest Mon Apr 15, 2013 7:18 pm

Kevind53 wrote:Good article, definitely some food for thought ... thanks AJ

Your welcome. I thought it was as well. Larry put out another article earlier today, which I also psoted. AJ

by SEBtopdog Mon Apr 15, 2013 7:56 pm

Great article, and good points, AJ. That's kind of why I said if a person already owns gold, I'd just ride it out for now. Why sell when the price is down? Call me crazy, but I'd wait until the bulls are running again.

by Guest Mon Apr 15, 2013 8:33 pm

World spot dowm $24 since close of NY Exchange. The bottom has yet to come!

by **Kevind53** Mon Apr 15, 2013 9:17 pm

SEBtopdog wrote:Great article, and good points, AJ. That's kind of why I said if a person already owns gold, I'd just ride it out for now. Why sell when the price is down? Call me crazy, but I'd wait until the bulls are running again.

Ahh ... that's the dirty secret of the market. Very, very few buy when they should or sell when they should. That's why the average investor never makes much money. Best thing you could do if you were in is to stay in at this point ... unless you bought at less and can still turn a profit, then you might want to think about selling, depending of course upon your goals.

by Guest Mon Apr 15, 2013 9:24 pm

Watching and waiting for the right time!

by Guest Tue Apr 16, 2013 8:25 am

I think Larry is right. He said Golds next support level is going to be around 1380 and that is right where it is. We'll see what the NY Exchange brings today. Maybe I should have purchased 350 ounces yesterday just before the close. 30 dollars is 30 dollars = 10,500 return over night, if the exchange does not go crazy down before 8:30 PST! We'll see what we missed! And maybe its for the better!

by Guest Tue Apr 16, 2013 10:23 am

From Bill Poulos,

We've been getting a fantastic response on this new video report about the recent gold & silver market plummet and the #1 spot
you can get back into the market once it recovers. The traders who got in trouble during the crash are those who thought they knew something...

But there WERE groups of traders who weren't phased by the metals crash at all because they used the approach discussed in
this video report.

Watch it here so you're prepared to strike...

Good Trading,

Bill Poulos

by Guest Tue Apr 16, 2013 4:22 pm

The markets from last Friday and yesterday (Monday) sure stink of complete manipulation! compared to the market reaction today.

Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

Re: Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

Re: Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

Re: Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

Re: Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

Re: Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

Re: Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

Re: Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

Re: Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

Re: Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson

Re: Urgent: Historic Gold Crash. What To Expect Next; By Larry Edelson