The drop from .20 to .165 was on light volume and a good support level is being approached. Picking bottoms these days is next to impossible but I am thinking we are now getting close here in particular and the overall market in general. The downside may continue by some percentage points but when the naked shorts are squeezed the upside should be quick and significant. The market is being manipulated for a reason and it's all to make money (capitalize TPTB), on the downside and then again on the upside. Three good and short articles all from KWN.
"We know that the physical markets are a complete disconnect with the paper market for gold. The demand in Asia, as evidenced by the premiums for physical gold, are at record levels. There is a shortage in the physical markets and the paper markets are very short.
The (gold) market short position is greater than it was at the bottom in 2008. So I would just expect a violent recoil in this extremely oversold market. I wish I knew when, but I kind of think it’s being exaggerated here at the end of the quarter.” http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/26_Physical_Gold_Market_In_Disconnect_As_Premiums_Hit_Record.html
“As I talk to you now we are now trading in the $1,220s, which is a new multi-year low. So the bulk of the damage was done in two time periods: In Asian trading and in equally thin Chicago (COMEX) trading, when most of the real players have already gone home. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/26_Physical_Gold_Market_In_Disconnect_As_Premiums_Hit_Record.html
“Every year in June or early July is always the point of maximum stress for gold and silver. This year is no exception. When I look at gold in particular, if you go back 1974 to 1976 we saw a 47% retracement in gold.
If we were to see something like that today, gold would go slightly below $1,000. Could it happen? Yes, of course anything can happen, but I doubt it. A 40% retracement is slightly below $1,200. We’re almost there on gold already.... http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/27_A_Legend_Speaks_Out_About_The_Gold_%26_Silver_Takedown.html