Lemming Week! Markets, Gold and Silver Plunge

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...Some analysts feel that the gold price sell-off at the end of the week was due to investors who had gold as part of their portfolio, needing to sell to cover their positions in the stock market in general. Silver just followed the gold price down...

Jittery markets for precious metals and stocks in general saw huge sell-offs following an 8 percent plus fall in the Shanghai Stock market Tuesday. Together with other data, this precipitated one of the biggest sell-offs seen in recent years with firstly Wall Street and London droppinging dramatically, followed by a big dip in gold and silver prices on Friday, just as the world’s major stock markets appeared to be stabilising.

Was there any logic behind the falls? Not really but maybe! The Shanghai market, which had been rising at an unsustainable rate, was almost certainly due a correction. But whether Western markets should logically have followed it down is definitely debatable. Whether gold and silver should have followed suit is even harder to understand...

Some analysts feel that the gold price sell-off at the end of the week was due to investors who had gold as part of their portfolio, needing to sell to cover their positions in the stock market in general. Silver just followed the gold price down.

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