The market action today brings to mind an interesting article by Martin Armstrong written a few weeks ago. It wouldn't surprise me if the insiders take this opportunity to clean out some of the hedge funds that only a couple of days ago had cash reserves of under 4%. Even if they are able to rally the stock market today with promises of ECB intervention, the damage has already been done. Hedge Funds are going to have to raise their cash levels and they are going to have to sell stocks and commodities to meet redemptions. Paulson is reputed to be down 22% in one of his funds this year alone, so he makes a good target..
This doesn't mean long term owners of gold should liquidate but it could mean an uncomfortable week or so for them.
I think gold is likely to perform better than silver over the next few months with the ratio going back over 50:1
This doesn't mean long term owners of gold should liquidate but it could mean an uncomfortable week or so for them.
I think gold is likely to perform better than silver over the next few months with the ratio going back over 50:1
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