About Gold: Don’t Panic!!!
It’s momentary—and it’s because of the euro.
For those of us watching the gold markets—that is, those of us anticipating the collapse of the euro and the eventual collapse of the dollar—the last week has been a scary ride: Gold has fallen over 8.6%, from a high of $1,730 on December 7 to $1,580 on December 14.
WTF???, I can practically hear everyone say. The fundamentals would point to gold being a safe haven play—it should not be falling: If anything, it ought to be rising.
But a fall of 8.6%? In a week?
The first thing that pops into my head is, Don’t Panic!!
The second thing that pops into my head is, This is to be expected—and is only a temporary pullback.
Let’s take the second notion first: The reason the fall in gold is to be expected—and the reason it might well fall further—is because of the euro.
As is becoming increasingly obvious, the eurocrats trying to sort through the European Debt Crisis don’t have a clue as to what they’re doing. They’re meeting—constantly—and wringing their hands—constantly—but they’re not actually getting anything done: They’ve become deers in the deadlights.