Thursday, June 20, 2013

Ah! Gold takes a big hit ( along with stocks )

Yes, it seems predictable.  If there's a big hit on stocks, there's likely to be a big hit on metals.

I kinda figured as much.

So, do we go back to a deflation/inflation argument?   There may be a school of thought that would say that both asset classes are in bubbles.  So, if there's a drop in one, there's likely to be a drop in the other.

My thinking follows a different train.  I think paper assets are in a bubble.  Gold can resume its climb like it did in 2008 and 2009.  But it may take a big hit before resuming its rally.

I noticed that oil hasn't changed much.  In 2008, it plunged.


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