Gold Drops in New York as Investors Sell to Cover Stock Losses

[marmar]

Sept. 12 (Bloomberg) -- Gold declined in New York as some investors sold the metal to cover losses in equities that dropped on concerns that the European debt crisis is worsening.

European and Asian stocks slumped on speculation German Chancellor Angela Merkel is preparing for a Greek default. The dollar was little changed after earlier today climbing to the highest level in more than six months against six major currencies. Gold touched an all-time high $1,923.70 an ounce on Sept. 6 and today set records priced in euros and Swiss francs.

“The margin clerks will be sharpening their knives today and will take dead aim even upon gold if that is where they think they can find liquidity,” Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter, said in his daily report. Some investors “will argue that gold will prove valuable and will hold its value even as stock prices plunge, and in the long run they may well be right.”

Gold for December delivery fell $16.70, or 0.9 percent, to $1,842.80 an ounce by 8 a.m. on the Comex in New York. Immediate-delivery gold was 0.9 percent lower at $1,839.68 in London. ............(more)

The complete piece is at: http://www.businessweek.com/news/2011-09-12/gold-drops-in-new-york-as-investors-sell-to-cover-stock-losses.html

[Me.]

1. Sold Gold When It Was Very High

Gathered up all the broken chains, earrings and cuff links without a match which added up to a small amount that almost filled the cup of a small hand. Went to 47th Street in Nyc and got over $1500.

[denverbill]

2. I love how business reporters can pretend to know this kind of stuff.

Really? The only reason gold is dropping is because investors are selling to cover stock losses? The people I know who have bought gold did it to get away from the stock market so they don't have any 'stock losses' to cover. And the only ones who need to 'cover' stock losses are those who are heavily margined long on stocks. And why would someone be long stocks and gold at the same time, especially so heavily margined that they have to cover losses by selling their gold hoard?