Much of the selling pressure in gold was panic and weak long liquidation.
FORBES: P.M. Kitco Metals Roundup:Comex Gold Hammered Lower, Hits 3-Month Low, On Panic Selling
There is little chance of a big turnaround in gold buying until market panic subsides, he predicted.
The silver panic spilled over into gold and copper as well, though to a much smaller degree.
Several market watchers said just as there is panic selling pushing down stock prices, panic buying is lifting gold prices.
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There has been no single fundamental catalyst for the panic selling in the gold and silver markets the past two trading sessions.
FORBES: P.M. Kitco Metals Roundup: Gold, Silver Slammed to 2-Year Lows on Panic Selling
Chinese asset values have not yet crashed across the board, but the buying of gold a leading indicator of panic is an especially troubling sign that they will.
FORBES: Why Are the Chinese Buying Record Quantities of Gold?
Glenn Beck, a talk-show host, foments panic and then urges listeners to buy gold from a company he endorses.
That's why, when the panic reached a peak this fall, gold prices didn't go through the roof as everyone sought safety.
It was the result of panic purchases of fixed-dollar priced gold.
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On such a day filled with panic, it was reasonable to assume that gold would go up, instead gold plunged.
However, crude oil prices went into a free fall and the U.S. dollar index soared, which ultimately led to panic-type selling in most markets, including gold and silver.
FORBES: Comex Hits Another All-Time High Early On, Then Backs Off Sharply on Long Liquidation
If such panic occurs, there is room for the price of gold and silver to go even lower.
FORBES: World Events Tell Us That Gold And Silver Have Lower To Go
Look for more liquidation next week since the Comex inexplicably raised the margins on gold and silver for the third time today in the midst of panic selling.
FORBES: Silver Down 30%, Gold Off 11% As Panic Hits Precious Metals
But it might not take such dire conditions to cause a panic that would send investors running to the bank to pick up or sell that chunk of gold they think is waiting with their name on it.
There was a Panic in 1873, which happened while the dollar was a floating currency, before it was relinked to gold in 1879.
FORBES: Let It Be Known That No Financial Crisis Was Ever Caused by Stable Money
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