........Black Monday For Precious Metals Sector
Gold is down over -1.5% right now and Barrick Gold (ABX) is down over -4% right now on the Toronto Exchange, where gold stocks are getting crushed so far today, see http://finance.yahoo.com/q?s=ABX.TO. It's a sea of red in Canada right now, see http://ca.finance.yahoo.com/q/cp?s=%5EGSPTSE.
Is gold the safe haven in crashing markets that many gold "gurus" would have us believe? Obviously not. Try T Bills and T Bonds, US Dollar denominated assets.
Foreign markets are crashing along with the US, and, the US Dollar probably entered a Cyclical Bull Market in November 2007 after being in a Cyclical Bear Market since late 2005, see http://stockcharts.com/charts/gallery.html?%24usd. But, it doesn't matter whether the US Dollar is in a Cyclical Bull or Bear Market, T Bills and T Bonds, US Dollar denominated assets, are a safe haven in deflationary crashing markets, NOT gold.
Gold IS a safe haven against inflationary economic upcycles, such as the real estate/mortgage/credit (credit cards, auto loans, electronics loans, furniture, etc) boom of 2002 to early 2006, which created massive monetary inflation.
The world has entered a deflationary economic downcycle, which is a poor environment for gold. Most gold "analysts" (clowns or frauds in most cases) don't even understand fundamentally what drives gold.
Given the extreme volatility of the precious metals sector, it doesn't take too much brainpower and common sense to realize that market timing and technical analysis are very important. How does one explain all the goofy idiotic gold/silver writers? Money makes fools or worse out of many people, as occurred to a great extent during the 1999-2000 stock market bubble/very long term upcycle peaking. Look at all the CEOs/execs that have gone to jail.
Just remember, professionals focus on risk, amateurs focus on reward.
....... http://www.JoeFRocks.com/ .
HUI NEM XAU
Is gold the safe haven in crashing markets that many gold "gurus" would have us believe? Obviously not. Try T Bills and T Bonds, US Dollar denominated assets.
Foreign markets are crashing along with the US, and, the US Dollar probably entered a Cyclical Bull Market in November 2007 after being in a Cyclical Bear Market since late 2005, see http://stockcharts.com/charts/gallery.html?%24usd. But, it doesn't matter whether the US Dollar is in a Cyclical Bull or Bear Market, T Bills and T Bonds, US Dollar denominated assets, are a safe haven in deflationary crashing markets, NOT gold.
Gold IS a safe haven against inflationary economic upcycles, such as the real estate/mortgage/credit (credit cards, auto loans, electronics loans, furniture, etc) boom of 2002 to early 2006, which created massive monetary inflation.
The world has entered a deflationary economic downcycle, which is a poor environment for gold. Most gold "analysts" (clowns or frauds in most cases) don't even understand fundamentally what drives gold.
Given the extreme volatility of the precious metals sector, it doesn't take too much brainpower and common sense to realize that market timing and technical analysis are very important. How does one explain all the goofy idiotic gold/silver writers? Money makes fools or worse out of many people, as occurred to a great extent during the 1999-2000 stock market bubble/very long term upcycle peaking. Look at all the CEOs/execs that have gone to jail.
Just remember, professionals focus on risk, amateurs focus on reward.
....... http://www.JoeFRocks.com/ .
HUI NEM XAU
Labels: Gold, Gold Stocks, HUI, NEM, Silver, Silver Stocks, XAU
posted by Joe Ferrazzano at
7:55 AM
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