muses of the moment

January 28, 2011

Leverage can kill you

Filed under: Gold and Silver Investing, Precious metals — Tags: — totallygroovygirlfriday @ 1:46 pm

The truth in the recent downturn in gold has been revealed.

Click here for Jim Sinclair’s comments and the whole story.

Daniel Shak’s $10 million hedge fund held gold contracts valued at more than $850 million, more than 10% of the main U.S. futures market.

Daniel’s bet went bad. Wonder if he was working for anyone.

Expect more and more of this type of thing as the paper price and physical price break and those with leverage get hosed.

This is physical gold positive, not negative.

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