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Thursday, December 12, 2013

Volcker Rule' Could Hamstring Big Banks' Gold And Silver Trades Mineweb

http://www.mineweb.com/mineweb/content/en/mineweb-gold-analysis?oid=221594&sn=Detail

Much has been made, particularly by the gold and silver bulls, of High Frequency Trading (HFT) by the mega banks like JP Morgan and Goldman Sachs as the possible (or probable) reason for some of the big take-downs in the respective metals prices which seem to have been occurring with increasing frequency over the past two years. 
Trading patterns have been illogical with huge selling orders of paper metal into the futures markets, usually at a time of day when markets are thin, thus driving prices down enormously, and prompting even more stop loss sales from algorithmic computer trading programs.  It is felt that no trader would sell in this manner as it hugely reduces any trading profits that might be made on the downs, although can lead to substantial profits being taken on any subsequent recovery.

2 comments:

  1. I think we are close to a bottom in gold finally my friend. Perhaps Monday marks the bottom??

    ReplyDelete
  2. I sure hope so PW, it looks promising for sure.

    ReplyDelete