Just immediately after I warned investors to be wary of gold speculation after it hit record high above $1910, gold price crashed with the biggest three-day slump since October 2008, it fell to as low as $1707 before it recovered. that is eye-dropping 10% down!
I had no crystal ball, neither was this a coincidence. The musical chair game of gold speculation, just like any other financial instruments, is always directed by professional institutional players. Whenever the music stops, those who are left out penniless are always the men on the street. Just as Dennis Gartman wrote in his Gartman Letter:
“Gold is a trade, gold is a position, gold is volatile, but gold is not safe,” . “The public is involved in gold, and the cab drivers of the world have bought into it. Now they are being taken out, at high cost.”
Gold biggest three-day slump since October 2008 (Source: Financial Times)