Gold slaughter underway

Gold is down $70, below $1500 for the first time in years. Silver whacked and oil down too as market worries about Zimbabwe Ben pulling out later this year.

This could get a lot uglier as leveraged futures holders get margin calls and are forced to sell. Those with physical gold and a long-term view? Buying opportunity. As Carmen Reinhart just said, the crisis isn't over and inflation (devaluation) is the only way out.

1 comment:

Doo Doo Econ said...

It looks as if gold is rebounding back into the 1500's, but it is hard to see how gold is this low.

I know there were reports of bad gold bars in central bank vaults. Of course, the stock market rise could be taking money from gold. Overall, economic news does not seem to justify recent weakness.

Happy Super Tuesday!