The persistant sell down of gold stocks...despite the rather steady price of gold is a bit curious.
Are the gold shares that over-valued...?
Or are the market masters desperate to keep gold from becoming a no-brainer that the public will flock to...?
Clearly, the public has to be kept out of gold....! Because that would be a disaster a massive vote of no confidence in paper money.
But still, the fundamental problems behind the commodity inflation...namely the weak dollar... have to be handled. And soon.
The FED will now have to protect the dollar at all costs...
And Bernanke seems to realize that he won't be Greenpspan Lite...but maybe he doesn't have to be Volker either.
Efforts to decouple gold and oil have been obvious for some time... And it may work short term.
But in the longer run oil, gold and the dollar will re-balance, and the true value of the dollar will be expressed in gold...and oil.
So any artifical push down of gold stocks...could be a huge buying opportunity, if all Hell breaks lose in the commodities pits later this year.
Gold Stocks are looking really cheap now...even as gold, the metal, treads water, and oil soars.
Gold Stocks should be a buy as they cross major price points....for example;
If gold stocks get to their one year lows...?
That would surely be the time to buy.
