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« What The Swiss Gold Referendum Means For Gold Demand | Main | The Swiss Gold Initiative and why it may affect gold prices »
Thursday
Nov062014

Capitulation or Nasty Sell-off in Gold?

Credit David Brown & Bob Hoye

Have we just experienced ‘capitulation’ in gold stocks, or just a particularly nasty sell-off?

Rick often mentions that ‘capitulation’ is a looming threat in a bear market. When it looks like stocks are already ‘down and out’, investors get driven over the edge and decide to sell at any price they can get. Investors want out. People who work in mineral exploration and development also give up and look at other career options.

Back in March, Rick said gold could fall back to around $1,150 this year. In mid-October, Rickmade a stronger prediction – October could be the month that we see capitulation in the junior market. “October is a month full of emotion” he said, and it’s easy for a weak emotional market to be driven over the edge by short-term volatility and a natural decline in prices due to tax-loss selling. “The market is cheap but it will get dirt cheap in a capitulation. I think there is a 50 percent chance for a terrifying capitulation sell-off within the next two weeks.”

In a complete capitulation, stocks melt down dramatically and some stocks just go ‘no bid.’ That hasn’t happened yet, which means that we may be witnessing a very nasty sell-off, but not complete capitulation.


Read more....

 

Is the bottom really in? Could there be a final capitulation just ahead of us? 

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Reader Comments (2)

You know its guys like you in the biz that with shorting the weaker miners at this point are continuing the bloodbath & smashing of the investors even more !
You are part of the problem !
The be right sit tight spiel that a well known gold stock analyst has implied to his following has almost wiped me out of a high 6 figure acc over the last 3+ years.
All you are is a momentum chaser ! with little credibility other than sit on the sidelines & short some more, your not part of the gold community.

November 7, 2014 | Unregistered CommenterBrent

Brent,

We are sorry to read about your plight but we have been warning our readers to the fact that this market would go down. If you read through our archives you will see a fair few articles about the state of the gold market and how to play it.

I am still a gold bull but have recognized that gold is in a bear phase and still heading south and so I have traded accordingly, to do otherwise would have hurt me financially. This has enabled me to build cash in readiness for the turn-around

To expect other people to hold a position just because you are holding it is a bit much and we will make no excuses for making a profit - that's why we do this and that's you do it, you expected to make a profit so you invested as you thought fit.

We do hope your fortunes take a turn for the better in the not too distant future, sincerely, Bob K

November 7, 2014 | Registered CommenterGold Prices

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