while de-leveraging has forced hedge funds to sell the only assets they can sell, it hasn't stopped retail investors from buying. and when the forced selling stops, i expect the retail buying to continue. so does peter spina of goldseek.
Demand for physical gold didn't slow even when some financial institutions were forced to sell their gold assets to ease the squeeze in their cash balances.
"Funds who would like to keep their asset of last resort are being forced to sell," said Peter Spina, an analyst at GoldSeek.com. "This is causing weakness in the paper gold market price, but it is not a true reflection of the physical market."
"There will be more victims of the fund collapse and more forced liquidations even if it requires selling your most desired assets such as precious metals," he added. "Once this process works itself through, the true market prices for gold will readjust."
http://www.marketwatch.com/news/stor...
