Thursday, February 19, 2015
China Spring Festival and gold
With gold having come off its strong advances in other currencies:
and with all of China on vacation til Feb 25th, thus a big part of physical demand being offline, I see no reason to be long gold or the miners right now.
And it's always been the case that you puke before PDAC if you know what's good for you, which should mean there's little opportunity to make money on gold anymore til the summer.
So maybe the deflation narrative dies off, the pop in Japan brings new hope to the investor class, the US continues printing solid economic numbers, and gold goes back into the doldrums til the annual June pop.
Too bad if so, cos I love making money on junior miners, but I'll wait for that fat pitch instead of wasting my time thank you very much.
Meanwhile I'll continue owning the US and Japan.