Quote Originally Posted by Dayuhan View Post
It doesn't take an abacus to figure that gold and silver are way out on a limb at today's prices. It doesn't take an abacus to figure that any positive economic news is likely to pull money out of precious metals and into equities and real estate, reducing support levels and depressing prices. Obviously short sellers are going to exploit this... but really, who cares? If the price of gold knocks back to $500/oz, how does that hurt the US economy? Sure, it sucks if you're carrying a long position in gold, but anyone carrying a long position in gold in what could turn out to be the opening stages of a recovery cycle is cruisin' for a bruisin' anyway. If you're betting on a double dip recession holding gold might make sense, but if the dip don't dip you're likely to take it where it hurts... this is the nature of the game.
As someone who is betting against gold, I heartily endorse your post and hope that you repeat it on as many credible message boards as possible, so as to help speed any coming decline in gold.