Gold should be rallying in normal circumstances, but there appears to be a general unwinding of the "Carry Trade". Yen above 120 to the USD. All assets being sold including commodities. Cash is the place to be.
Gold
Started by
donone
, Jul 25 2007 04:04 AM
2 replies to this topic
#2
SilentOne
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Posted 25 July 2007 - 04:37 AM
donone,
PMs have sold off in tandem with stock markets for some time now. Gold and silver are part of the liquidity driven speculation in many asset classes. Gold has not been bought on a major market decline since perhaps 2001 - 2002. Blame hedge funds and their program trades, whatever. It is what it is.
cheers,
john
Edited by SilentOne, 25 July 2007 - 04:41 AM.
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#3
beta
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lasergirl
Posted 25 July 2007 - 12:47 PM
donone,
PMs have sold off in tandem with stock markets for some time now. Gold and silver are part of the liquidity driven speculation in many asset classes. Gold has not been bought on a major market decline since perhaps 2001 - 2002. Blame hedge funds and their program trades, whatever. It is what it is.
cheers,
john
The chart below shows that $gold bottomed in 2001, and is up nearly 200% since then. Conversely, the major averages peaked in 2000, and bottomed in 2003. Going back further, a historical comparison shows many periods since 1980 when gold as an asset class has outperformed the averages:
http://stockcharts.c...iagold1980.html
Edited by beta, 25 July 2007 - 12:49 PM.
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