Ed - gold $293 in far off land, yep dis gonna be mother of all bottom-fishes. You see, I think the price of gold is being rigged so that noone goes after it as a safe haven. Like if the DJ was to come tumbling down to cause some tax loss selling on the broader market, think of all the money the governement wouldn't collect. Therefore, any threat by gold, and it gets whacked.
So the shorters know this and are having a field day, the fund managers just want to get anything off the books the smells of gold, and the poor resource sector is getting clobbered.
Now as soon as we get over tax loss, and the end of the month where the fund managers have finished dumping, there could be a bit of a rebound. Gold should start to come back as well to support this. Now all the guys who have been bad-mouthing gold and buying it on the sneak are going to want it to go as high as it can go and make some money out of it. This will run counter to whatever the Central Bankers who have been buying a little, but then they may not mind a little run, especially if they can sell way up the line.
Should be quite a see-saw battle early in the new year. Broad markets may stay up through RSP and gold should make a comeback. IF gold rises too quickly to stampede a sell-off in the braoder market, gold may get clobbered again.
What's your call.
I've got quite a botton-fish list too - the ones with cash and obvious accumualation are the ones to watch. I am trying to combine my bottom-fish list with the Fagan cashed up list. |
