Silver is either 1) a terrific buy right now or 2) it could be in the early stages of its death throw. I'm betting on "1" .
Gold was soaring this morning on global fears and worse than expected US economic news, after showing some earlier strength in the London trade. Stocks were slumping badly. However the tide was turned and the trading algorithms reversed gears and paper was driven higher, with gold coming well off of its breakout attempt having run up to a little over 1250. It finished out the day with only a modest gain to around 1230. As befits a day driven by the fear of risk, gold was outpacing silver. Nothing has changed, the fundamentals remain as poor as they have been. We have merely been treated to a 'wash and rinse' day, which is the hallmark of a market that has diverged badly from its proper place as a source of fruitful investment, and productive resource allocation http://jessescrossroadscafe.blogspot.com.au/
I was watching NCM and SAR pretty closely today. There was a wave of selling late in the day that brought out a heap of buyers. People placing big bets today I think. data out tonight.
Got whacked but coming back a bit. Wouldn't be surprised if it retraces quite a bit as the news sinks in.
http://www.cnbc.com/2016/02/26/deutsche-bank-its-time-to-buy-gold.html "There are rising stresses in the global financial system; in particular the rising risk of a U.S. corporate default cycle and the risk of a sharp one-off renminbi devaluation due to the sharp increase in China's capital outflows," Deutsche Bank added." Buying some gold as 'insurance' is warranted,"
Interesting psychology.... Hold phys for 5 years in a price down-trend of >50% ..... still right, profits on-track. One blip in the first 12hrs of a paper trade.... profits gone. :lol:
