Friday, February 5, 2010


Precious metals have been slam dunked along with other markets. Bad data and weak earnings triggered quite a sell off today.

A '' -$40 '' pull back in Gold today is sure to panic bullish gold bugs.
As I said in recent posts, a correction was expected.

Equity markets and precious metal markets have had a fabulous run.

The boom in equities was supported on a foundation of stimulus packages, job cuts, cost cutting and ever expanding government debt.
On the other hand, the ten year long bull market in Gold and preciuos metals has a much much stronger foundation.
I'm watching this space for a buying opportunity. It's choppy out there, and the continuing equity market correction will create more volatility.
Silver too has corrected quite a bit; down over 7 % today!! As usual, silver is far more volatile than gold.
Silver is down over 14%, over the last 30days vs. a 5.17% pullback in Gold over the same period
For now, just hang in there!!!

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