Thursday, May 31, 2012

Down with gold

Gold Poised for Worst Monthly Run in 11 Years on Europe

Gold is poised for the worst run of monthly losses in more than 11 years in New York as concern that Europe’s fiscal crisis is escalating drove investors to seek the dollar as a haven over the precious metal.

Comment: Don't try to find a logic in what's going on. As any serious investor should know, markets are not much different from looney bins or kindergardens. Monkey business also fits well. There are times when the wise man should stay away from the market. Yet this is easier said than done. Moving out of the market always also means to move into something and when it is cash the question arises about which currency to choose. As much as there was a shift out of the dollar into gold and dollar and the shift is now gong back into the dollar and out of the euro and gold, the next shift will be back again into euro and gold.

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