Presentation on theme: "Gold/Silver Market Crash – April 2013 Daryl Montgomery April 18, 2013 Copyright 2013, All Rights Reserved The contents of this presentation are not intended."— Presentation transcript:
Gold/Silver Market Crash – April 2013 Daryl Montgomery April 18, 2013 Copyright 2013, All Rights Reserved The contents of this presentation are not intended as a recommendation to buy or sell any security.
Prelude to a Crash Silver peaks at $48.70/oz in April 2011. Gold peaks at 1921.15/oz in Sept 2011. Silver had been declining for 24 months. Gold had been declining for 19 months. Sharp price after long decline indicates bottom. A sharp drop on high volume is called capitulation = All the sellers get shaken out of the market.
Timeline of Crash Up to Friday Goldman Sachs tells clients to short gold futures on Wed, April 10 th. Target price $1390. Spot gold drops $22. On Thurs April 11 th, New York Times has major article saying gold has lost its luster. Spot gold goes up slightly. On Friday, gold gaps down and breaks $1540 support, but initially holds at support at $1524. Trades as low as $1482. Gold down $72.70 and Silver down $1.45 on Friday. Huge volume spike. Very oversold.
Timeline of Crash Friday night: gold bug panic sets in. Aden Sisters recommend cutting PM holdings in half. Gold/silver gap down on Monday. Gold drops through several levels of support until it hold around $1350. Gold down $124.40 and silver $3.16. Overnight bottom: gold 1345, silver 21.95. Massive volume spike and technicals reach total wash out levels.
The Day After the Crash Gold continues dropping after Boston Marathon terrorist incident (strange). The CFTC reduces allowed leverage for precious metals trading. Goldman Sachs says market hasnt bottomed. Crackpot predictions surface including one that predicts gold will drop to $800. More reasonable predictions surface given valid reasons why gold could drop to $1250 to $1300 (production costs).