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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: maxncompany who wrote (4570)	2/25/2007 9:37:32 PM
From: SliderOnTheBlack	Respond to of 50106

max re: ["margin interest is up across the broad market, not unique to gold at this time."] Max that's a valid point...but, if you dig beneath the surface just a bit... it's a bad one for the broad market and even worse for gold -- because just as the gold stocks have lagged the metal for the last year. Margin interest in gold...lagged the margin that went into the DOW/S&P large caps. This chart speaks volumes on where liquidity is going and who's really benefiting: 2 Years: Gold & Gold Stocks have been underperforming for the last 6 months: Max I know you've been pounding the table on other metals. That's my point... Be it Silver & Palladium doubling and tripling the returns of gold over 6-9 months post Katrina; or Corn, Wheat, Beans, or other metals doing the same of late... gold has NOT been a leader for sometime. It's been a trading vehicle...and the best trade of all has not been on direction, but on volatility itself....ie: the 600 points of volatility just since last May... 6 major moves "averaging" 100 points... not to mention the two years prior with near 100 point shakeouts on the HUI back to back. Hardly buy & hold. More like try to hold on and then get shaken out. Jump on the rallies.... roll over. Get shaken out (again). Jump on (again)...and roll over. Get shaken out (again). Wash, rinse and repeat...