In response to Frank Underhill’s interview on howestreet.com last weekend where he said that the current downmove ingold is unprecedented, I differed in my opinion, based on my recollections of similar large moves in 2006 and 2008. I posted this reply to him, after doing a bit of research on the kitco.com website’s excellent historical gold data and charts.
The Frank Underhill interview is here:
http://talkdigitalnetwork.com/2013/04/gold-sinks-like-a-brick/comment-page-1/#comment-4472
and here is my reply:
Yes Frank, we hare having a bloodbath in gold right now; it’s about $1400 as I write and the low in this move so far was about $1355. However, here are some examples from Kitco daily charts of big falls and big gains in the past (usually near tops or bottoms):
Large gold drops and gains in the past during this bull market, just in the period 2006-2008:
20 April 2006, gold down $40 from 645 to 605 (-6%)
15 May 2006, gold down $44 from 720 to 676 (-6% – 720 was the interim top)
24 May 2006, gold down $35 form 670 to 635 (-5.5%)
13 June 2006, gold down $50 from $600 to $550 (-8% in 1 day and $605 to $540 in 1.5 days -$65 or -11%)
19 March 2008, gold down $80 from 1000 to 920 (-8%)
17 September 2008, gold up $90 from 780 to 870 (+11.5%) in New York session alone or
17 September 2008, gold up $110 from 780 to 890 over whole day (+14%)
13 October 2008, gold down $100 from 930 to 830 (-11% in 11 hours – or -$110 to 820 in 1.5 days (-12%).
21 November 2008, gold up $54 from 748 to 802 (+6.7% – but up $81 from 748 to 829 or +10.8% in 1.5 trading days).
So I don’t think it is unprecedented.
