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gold on rise?

  1. abu
    5,972 Posts.
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    Friday 21 November

    http://globaleconomicanalysis.blogspot.com/2008/11/i-like-gold-here.html

    The action in gold and the miners is very encouraging. The overall indices got hammered yesterday and gold did not follow. Nor did the gold miners. Hedge fund selling and leverage unwinding in gold may be complete or nearly complete.

    The action in gold, gold miners, and the stock market yesterday suggests the bottom is in for gold. Seasonally, gold is favorable through January although seasonal trends in gold have not panned out well this year.

    I have often said that gold would decline in the initial stages of deflation as leverage was wiped out everywhere. If that leverage has been wiped out, gold miners have a lot of catching up to do with the price of physical gold.

    Finally, gold itself is now free to rise in deflation given its true role as money, even as those in gold for the wrong reason (as an inflation hedge), bail.

    Mike "Mish" Shedlock
    http://globaleconomicanalysis.blogspot.com

 
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