Tuesday, September 10, 2013
Question about gold and silver
OK, silver's supposed to go up as world industrial production increases, especially as it's an input to solar production.
And gold is supposed to go up as it's an asset that makes up part of EM wealth asset allocation.
But today both went down, ostensibly cos Russia did something nice to forestall a Syria invasion.
So the question is:
Should that be it for gold going down?
In other words, if you're an American crackhead trader who's gone long gold on Syria, did you close your long this morning?
Cos I'd like to buy a few gold miners back at now-discounted prices, but I don't think they've reached the pain level of selloff yet. And neither has gold.
So is there another reason idiot Americans were long gold that they are still hanging their hat on? What's the shoe left to drop?
Something to ponder.
Of course I could just stay out til I'm sure the selloff is complete and let someone else make the first 5-10% profit.