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Message: Shorting
One topic I neglected to mention but that was recalled by Mercury19 in another place was the large short position that showed up suddenly about mid November - "Hugh recognized that as of Nov. 15th there's been over 2.0 mln shares shorted and doesn't know who it would/could be."
Tonight I was browsing on another US forum and discovered this posting:
"What are we to make of Goldman advising it's clients to short gold? Odd that just a week after it's own PM analyst issued a report claiming gold would be averaging $800 in 2008, they suddenly reverse course and claim that gold will be soon be dropping 15 to 20%." and
"USD rally and what may drive it
If the debt crisis really heats up and debt becomes a MAJOR problem there will be (as there always has been in those times) a rush into cash and cash still means USD here in the USA. If a huge amount of USD's need to be acquired to reduce debt it will drive the USD back towards .80 and maybe above. GS obviously knows more about what type of problems lie out there in the debt crisis world and may know as much as anybody about what type of USD rush may materialize. Furthermore if deflation is allowed to take hold all commodities will lose value against a rising USD. "
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If Goldman Sachs has been instigating shorting of gold, perhaps this influenced some larger investment groups to short SGR as well. It seem GS is anticipating a US dollar rally. Interestingly, our Cdn$$ in now back below par. How things change in just a few days time!
Any thoughts on this, anyone?
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