How Did Gold Do During This Correction?
Source: Seeking Alpha (8/14/07)
In the wake of last week's volatility, the newspapers and Web sites are full of bullish commentary on gold.
"Suddenly, the world is realizing that gold is still a safe haven asset," says James Moore, metals analyst at TheBullionDesk.com, in the article. "We've seen pretty substantial losses in equity markets."...
Last week provided the perfect test of gold's safe haven status, as the panic was custom-made to appeal to gold bugs. For starters, the market was in turmoil, with major investment banks seeming to teeter on the edge of chaos. Moreover, the Fed responded just the way gold bugs predicted: by throwing money at the problem. "Helicopter Ben" and his comrades in Japan and Europe opened the spigots on money supply and showering the market with liquidity.