Just wondering... Normally 'it's time' for a correction. This time the impulse is showing upwards and the correction downwards. For those who missed the boat... prolly gold at 1,200-1,250 USD could be a buying opportunity? I already started wondering whether it will ever sink that low this year!!! :lol:
Sure hope so. That upward surge was too quick for my liking. I really dont want to buy at these prices.
Straight no.. shorters will get crushed! Physical metal left the station in December, some gold / silver stocks have a late train.. but thats also leaving in about 25 minutes.. last call 1for1
That's the big question will the shorts get hammered. I certainly think that there will have been some PM hedging from Euro based managed funds as an obvious hedge against the Euro decline but diversified away from more straight up dollar plays. I think the PMs certainly have strong short term support from: 1) Eu Print 2) Greece mess 3) Swiss depegging. The Eurozone is a massive economic block and the PMs look real good since October if you are missing out and holding Euros or Euro denominated assets. The paperwork and W8 taxes, blocks on easily buying US bonds for retail investors etc make PMs look fairly straightforward and easy. Germans have always held small quantities of PMs and the EU print can only drive more buying there. If the shorts get badly beat up this could move into something with stronger legs.
"On average, every German owns around 117 grammes of gold, comprising 55 grammes of jewellery and 62 grammes of bars and coins, the study, which surveyed 2,000 people, found. Taken together with gold securities, the average German owns some 5,750 of gold. " http://www.thelocal.de/20121212/46729 Lack of faith in the Euro could see some increase in retail specifically in Germany but throughout the Eurozone. That is a lot of consumers.
Germany has the most to gain by leaving the EU, Germans have the most to lose, therefore the savvy look to protect their wealth through stores of value and real money. (As you do.. also with the relatively fresh history in the back of many of their minds)
Then there is the Cypriot who got bailed in and wants to store wealth, those who remember the black market when the USSR fell, the French who have always given the Francs history used PMs as a wealth store. Aside from the repatriation exercises there have been a lot of laws introduced around PMs in the Eurozone (VAT in Germany on silver, illegal to post in France etc etc). Noted Royal mint is now doing bars (sterling does so much trade with the Euro it is greatly effected). It is a huge market if it turns to a lack of public faith in Euros. That may not be far off.
I suspect that any Country that has experienced hyper-inflation or a crash of their currency in living memory would be strong believers in gold.
I think it will go down & up with the typical tease . Crude is on it's own path . The Dow is getting plenty of positive attention But really buying now is OK cause still you never know , cause what you think is high becomes a low. Is not $ 1,279.40 good enough
***waits exactly 3 seconds for people to stop saying it was all a bull trap and start complaining about missing the last dip for 2015***
