Precious Metals - Scapegoats to Skyrockets

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"When you're perhaps facing a catastrophe in the U.S. financial market, investors are thinking: 'Screw it. I'm jumping back into the old faithful'," said Joel Crane, a metals strategist at Deutsche Bank in New York.

...Now GLD is above both its 50 day and 200 day moving average. That is a strong, technical sign...

Now gold and silver are making very strong recoveries. They were in many ways scapegoats and victims of forced liquidations and big-money manipulations.

Rumors still abound that the Fed actually had something to do with forcing precious metals to retreat and stay down for awhile. Yet to get our hands on the physical, hard stuff was virtually impossible.

Now, "magically and suddenly" gold and silver are skyrocketing as "safe havens". Most of us knew that was inevitable.

Any forced, contrived and violent corrections in intrinsically valuable assets such as gold and silver will have an "equal and opposite reaction" on the upside...

No doubt the reaction was to the spreading credit crisis, which yesterday saw the government having to, essentially, nationalize the nation's largest insurer, AIG, in order to prevent it from failing.

"When you're perhaps facing a catastrophe in the U.S. financial market, investors are thinking: 'Screw it. I'm jumping back into the old faithful'," said Joel Crane, a metals strategist at Deutsche Bank in New York. And, "Gold's relative value is cheap compared with the dollar," he added...

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