jeez We are coming into one of the big contract months for gold and the forces of darkness are trying to spook the market into selling out of total fear of a "plunge" in gold prices, for reasons relating to their own purchases of gold, methinks. Just for clarification purposes, we saw a plunge in banks stocks worldwide last year with an average drop of 72% from their highs.....are we to suggest, then, that a "plunge" in gold should be equally as brutal since it is a plunge we are predicting, after all.... I think, sometimes, commentators have trouble seeing the wood for the trees..... Instead, I would sugesst that contrary to the scaremongers amongst us, we are likely to see a period of increased volatility in gold prices followed by a sharp repricing upwards. The Fed have interest in making sure they get their $100 billion bond auction away ok this week and for that reason they will encourage USD buying and gold selling, but it will not deter the longer term trend for gold. There has been a structural change in the market and I suspect we will see many more Dollars printed than we ever thought posssible before this crisis actaully ends.
