Regarding GOLD and SILVER
VISIT Trader Dan's site:
www.traderdan.net
Below is a response I received in the COMMENTS section of Trader Dan Norcini's website. This guy is a NO NONSENSE TRADER and he has some very credible information and observations on the markets:
News Unit;
My concerns are the exact opposite when it comes to the metals. I worry about deflationary winds gaining force and creating the same sort of collapse in prices that we saw back in 2008, prior to the onset of the QE programs.
It looks to me like what is taking place is that stocks are the only game in town as far as yield. That has lead to lots of leveraged bets on equities as money has come out of commodities due to slowing growth.
If equities begin to falter, we could see an unwind of those leveraged bets.
Remember what happened to not only stocks, but commodities back in 2008 and what happened to the US Dollar. The latter rose while the former collapsed lower in price as all the longs ran to the exits at the same time.
We all thought ( or at least I did ) that gold would perform as a safe haven back then and would soar in price as a safe haven. Instead, it was sold off to gain liquidity to meet margin calls and close out bad trades.
It was not until the Bernanke led Fed introduced QE that gold recovered.
Who is to say that the same thing might happen again should we experience any sort of big "risk aversion" trade?
I honestly do not know.
Like I have said many times here, much to the confusion of the perma gold bulls - I own physical gold for insurance reasons and recommend so do others. I am happy to own it but I am certainly not rooting for it to soar in price as some of these perennial snake oil salesmen are doing. The reason is simple - the world, society and everything else around us will be so miserable that very few of us will welcome those things which must inevitably accompany a gold price of that magnitude.
