AuthorTopic: Gold is Behaving Differently Than in 2008  (Read 378 times)

Online Eddie

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Gold is Behaving Differently Than in 2008
« on: February 12, 2016, 04:12:43 PM »
Gold and silver have drifted down with commodity prices for three solid years. Now, in the first six weeks of this year, we've slipped into a bear market in equities, and banks and even nations are on the verge of default.

In 2008, metals sold off as hedge funds sold SLV and GLD to raise money to meet margin calls, and some of us here, myself included, expected to see some that again if equites took a big correction. But instead, gold has formed an obvious cup bottom, and the question I have is will it even make a handle before it takes off like a rocket?

The difference this time? No big players are holding gold anymore, so they're selling off something else to meet their margin calls. And not only that, their is a real expectation among many, whether it's right or not, that banks are gonna fail and nobody's gonna bail 'em out. That instead there will be bail-ins and NIRP, which is just stealing from the depositors either way.

I read today on ZH, they quoted Jose Canseco, of all people. " What's left? Gold or bitcoin. Which will it be?"...or something like that. With bitcoin getting a ton of bad press lately, I'm not surprised to see a lot of people, especially Europeans, lining up to buy gold.

This is the quickest reversal of sentiment I've seen in the dozen or so years I've been following the metals.

I think we could see a very quick jump back up to the levels we had in 2011. I'm not betting the farm on it, but I wouldn't be surprised at all.
« Last Edit: February 12, 2016, 04:41:48 PM by Eddie »
What makes the desert beautiful is that somewhere it hides a well.

 

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