Yesterday I sounded my uneasiness about the short term price...

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    Yesterday I sounded my uneasiness about the short term price movements in precious metals which is rather uncanny as I am usually and have been bullish on gold and silver which have been the cornerstone of G&B , that I took very quick protection measures to wind down exposures. This is due to their inability to capitalise on USD weakness, better than expected economic numbers and the lack of follow through of the Us China tension following the outbreak of mass protests across America. Gold having broken through 1700 would now have to defend 1650-1680 while silver is also being trashed. We may see some short term pain in precious metal stocks but weakness in the sector provides long term buying opportunity because the CNBC commentators can be upbeat for now but this is likely to bring us closer to the final point of the melt up . As I have said it comes down to what Potus does or does not do and the likelihood of a prolonged stimulus could be ending and that's when the pain starts..the markets conveniently forgets this time that good news can mean bad ...as bad news meant lower rates previously, good job data means less need for stimulus but the reality is that the economies of major industrialised nations are stimulus dependent and need to remain so for longer.
 
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