Thanks everyone for participating in the survey from yesterdays post discussing reasons for the recent selloff in gold (here). Almost half of the participants provided reasons other than the ones listed in the survey. Of those who chose an answer from the list of choices, here is the breakdown.
The "other category" was dominated by two items:
- Global deflationary/disinflationary trends and expectations (high gold/CPI ratio, etc.)
- Market manipulation by central banks and "the bullion banks"
Here are some other answers in no particular order (apologies if your answer wasn't included):
- Indian consumers blocked by new import duties (this was actually listed as a choice - see dark blue in chart above)
- Lack of momentum / bearish sentiment
- Mistrust of gold "paper" products vs. physical gold
- Chinese commodity carry trade unwinding, with gold often used as collateral
- Seasonal effect - less demand for physical gold
- Misguided belief in global recovery
- Investor complacency/declining market volatility
- Less need for gold as "insurance" against "monetary Armageddon"
- Algo trading
- Continued bursting of the gold bubble that peaked in 2011
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