Mmmm. Depends on what length of time you are looking at. Over the short term, gold's price may subside. But gold goes well when the US economy isn't, and if these high oil prices cut further into consumer spending in the States, and some panic ensues, look out. In this situation the foriegn money would come out of the US, which is propping up their extreme debt levels. The US sharemarkets have been in a prolonged (7 month) slump. And all bar one sharemarket crashes were preceded by gradual bearish signals over similar or longer periods. Holding PM stocks and bullion as an insurance, at least until the US market returns bullish. Last nights 1-2% rally on the Dow was on low volume. A clearer picture will be gained in September, me thinks.
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