The carnage continues in after hours trading with spot prices around $1,477 the ounce.
It is thought in some quarters that the terms of the Cyprus deal requiring Cyprus to sell some of its gold to contribute for its bailout sets a bad precedent for other periphery countries in the Euro who may also be asked to sell gold to help pay for bailouts. The increased supply would be hugely negative for prices.
Sounds like people got out of GLD in particular big time just as the rumors were breaking in the middle of the week, and today the facts are spreading a dim pall over the entire gold market.
Deposit confiscation, then sovereign gold. Are they going to start going through the safe deposit boxes, too?
