$200 Later: The Golden Beat Down

OK, so here's the deal with the gold beat-down which has seen the prices quoted by Kitco (above) slammed from over $1,900 down a little more than $200 lower ($1,702) this morning. More than a few readers are thinking "What's going on?"

For one thing, tomorrow is Gold, Palladium, Platinum, and Silver expiration in the commodities markets. Time to ante up. And, since many BIG players have been play the short side of the market, they needed - we hear - to either get prices down or face the inability to make deliveries.

Good article in the Detroit Free Press this morning, too.

And that problem is likely reoccur according to a reader in Australia:

"Hi George,

An employee of a rather large bullion company (name deleted) in Brisbane told my fiancé during a pickup that they will be running out of silver in the next couple of weeks. They will not have any more silver deliveries until APRIL 2012! No one can keep up with the demand. Once they are out they are out."

And, other sources in the metal trade, tell us the sudden collapse is having just the desired effect: People were showing up in such numbers worried they had "missed the top" and anxious to sell, that this one jewelry outfit almost had to call for local police backup to maintain order on Sunday.

My comment : Remember the post I made about maybe Venezuela not gettin delivery of their gold in foreign depositories? Might be something to it eh?