3.3 million ounces dumped in paper gold yesterday – Gold drops again at the COMEX open

3.3 million ounces dumped in paper gold yesterday – Gold drops again at the COMEX open by Michael J Kosares for USA Gold

After another attempt at a rally overnight ran out of gas, gold dropped again on the COMEX open.  It is down $5 on the day at $1450.50.  Silver is down 9¢ at $16.75. As reported yesterday, JP Morgan and Citibank led this bout of selling with their liquidation of gold futures’ positions late last week. Since then, BNN Bloomberg reports that an additional roughly 33,000 contracts, or 3.3 million ounces, were dumped in a 30 minute period yesterday morning. Those sales drove the price down another $10 and below the $1450 mark. The selling seems to have carried over to this morning’s open.  With the rapid drop in the price – almost $65 over the past week and $100 from its highs in early September – longer-term investors in the physical metal who like to buy the dips might be encouraged to test the waters at these levels.

Quote of the Day
“[L]arge government deficits exist and will almost certainly increase substantially, which will require huge amounts of more debt to be sold by governments—amounts that cannot naturally be absorbed without driving up interest rates at a time when an interest rate rise would be devastating for markets and economies because the world is so leveraged long. Where will the money come from to buy these bonds and fund these deficits? It will almost certainly come from central banks, which will buy the debt that is produced with freshly printed money.”Ray Dalio, Bridgewater Associates, Linked-In article

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Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.