There are many reasons why gold got hit hard recently, but I think the main reason was a coordinated attack by the central bank on the metals.
Last Friday, they raised the margin requirements on gold, copper and silver. I believe the exchange came out and hiked margins requirements on gold by 21%, on silver by 16% and on copper by 18%.
Do you think the big guys at JPM knew of this? I'd have to bet they did and since they had such a gigantic short position in the metal, they used that foreknowledge to nod to the syndicate that they'd work their high frequency trading platforms and drop silver/gold like a rock.
It looks like that worked and they made a lot of money! Sounds criminal to me, but I'm just a little guy, how would I know?
What's your opinion about what happened to gold? Do you think the smaller investor will use this opportunity to buy gold in smaller quanities now?