After a lengthy bear correction in a gold and silver secular bull run time seems to favor the bulls as the physical market (the real market) is colliding head on with the paper market. Reports of bullion banks now settling customers holding allocated gold in paper should make anyone that's holding paper gold realize their game is coming to an end. Liquidation of GLD may have more to do with the fear of paper redemptions not even being made in a real crisis and of course that's why many own gold.......for a crisis. As the big boyz go net long on the leveraged contracts on the COMEX one has to wonder just how long they can carry the paper short on gold without creating a critical loss of bullion. Price can rectify some of the wrong but it can also stampede a run of bullion accumulation.
Grinding the miner trade into sausage has been brutal and is also nearing a turn but of course the damage has been extensive. Anyone remaining in this trade with 20/20 hindsight can see just how damaged their portfolio is. The big question is will they now turn the trade for their own profit having created a dramatic low that has forced all but the most stalwart trader out. Some smaller miners are trading at less per share than their revenue/share. Some miners have P/Es less than 4. NO ONE wants in the trade. Can you blame them?
Right now the battle is how long the illusion that fiat currencies backed by promises only can hold the sheeple in the system until the East drains the last of the bullion from the West. The East knows the system is in peril but then so are they. Killing off the West without being in the strongest position yourself to support an alternative reserve currency is not a mistake the East wants to make. So how and when the plug gets pulled is only a guess at this juncture. For hints at what is in store for you if you reside within the Western banking system just look at what is taking place now as the confiscation of assets begin in earnest in the debtor countries. Wealth cannot be created for the West....it can only be confiscated now. Money printing is only for the survival of the over-leveraged bank balance sheets and for propping up the Government deficit spending. All of which ends badly.