The market sees what it wants to see... As proof look at the dollar story in the link...
The market is expecting higher inflation numbers this week...so, the dollar is up! Why? Well higher inflation means Bernanke will keep raising rates, which is good for the dollar...
But gold is DOWN! Why? Well if Benanke is protecting the dollar that means gold will be weaker...BECAUSE INFLATION IS HIGH BUT THE DOLLAR IS ALSO HIGH... THUS GOLD IS "VACCINATED" FROM ANY CHANCE OF GOING UP!
But oil is UP! Because inflation is up! And oil will stay up and even go higher... Why? Well because it isn't gold and it isn't thinly traded like gold shares.
THE DOLLAR APPEARS TO GO UP ON INFLATION NEWS! SO LETS PRINT MORE OF THEM!
AND GOLD GOES DOWN ON LOW INFLATION AND HIGH INFLATION!! THE PERFECT CATCH-22!
As I said: The market sees what it wants to see...!
GOLD SHOULD KEEP PLUNGING...WITH GOLD STOCKS PLUNGING EVEN FASTER...GOLD STOCKS WILL NOT BE VIABLE BUYS UNTIL THEY REACH THEIR ONE YEAR LOWS...
APPARENTLY, GOLD STOCKS DO NOT GET OVERSOLD!!
THE CENTRAL BANKS AND THEIR SHILLS MUST BE SHORTING THEM NOW BECAUSE EVERYONE WHO REALLY WANTS TO SELL HAS LIKELY SOLD ALREADY!
EVENTUALLY GOLD STOCKS WILL RALLY ON SHORT COVERING...BUT NOT BECAUSE THEY ARE OVERSOLD...
AND BEING THINLY TRADED, IT COULD BE RATHER HARD FOR THE SHORTS TO FIND STOCK TO BUY...
BECAUSE MY SHARES ARE IN THE "SOCK DRAWER" PERMANENTLY!
