Thanks Salida, you made my year...or did you???

If you read my blog you know I had been calling for a correction in gold based on two factors. First, the chart was forming a textbook double-top that should have put fear in the heart of any investor, and second, the precious metal was simply overbought and due for a pullback. Even good ideas get ahead of themselves. Long-term I actually think gold is a buy. But what's the exact reason for gold's $300 pullback which actually helped me get back to even and then ahead for the year? For weeks there have been rumors that Salida, a Toronto based hedge fund that invests primarily in metals and energy, was giving up the ghost. Them along with Paulson we're rumored to be liquidating their holdings on the open market fueling the massive declines (it has been the the common thinking that losing hedge funds have been raising cash by selling their gold positions to cover margin calls or redemption's). They've denied these rumors of liquidation and I tend to believe them. I've attached their monthly performance letter which explains their massive fuck-up, causing them to be down almost 50% on the year. It looks like they continued to load up on precious metals and oil stocks into $1900 gold and $100 Western Texas Intermediate. Oops. Check out the letter for yourself.