Previously, levered hedge funds were forced to sell gold on stock margin calls. How long until today’s gold plunge, the largest 2-day drop in the past 30 years, forces funds to start selling stocks to meet margin clerk’s vocal demands some time around 2pm today? The rapidity of gold’s drop is impressive, concerning, and disorderly. We have seen two other such instances of disorderly ‘hurried’ selling in the last five years. In July 2008, gold quickly dropped 21% – seemingly pre-empting the Lehman debacle and the collapse of the western banking system. In September 2011, gold fell 20% in a short period – as Europe’s risks exploded and stocks slumped prompting a globally co-ordinated central bank intervention the likes of which we have not seen before. Given the almost-record-breaking drop in gold in the last few days, we wonder what is coming?

“As Commodities Melt we are we are led to believe that some how it was the Chinese economic disappointment that has somehow precipitated this reality. Yet this PAPER ROUTE has nothing to do with the Chinese, Indians or Russians. This is all about the American JUST_US system, as in you and me, NOT them! Totally illegal naked short selling in the PAPER market. If you or I were to engage in this sort of activity we would already be in Jail. This sort of activity that always precedes horrifically bad news. My guess is that a too big to fail bank can’t be bailed, so it will fail ….. JPMorgan ??? ….. maybe GLD’s or SLV’s bluff were called ? Could the Obama Administration and his bankster financiers do not want Joe Six Pack and Suzzy SUV to benefit from the next leg in this Gold/Silver bull market! Anyway, I am convinced that the move up, or whip-lash up we leave the majority completely destitute.” (A friends view)

Reference Zero Hedge (Tyler Durden)                     www.donfilippo.ca

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