Personally i think silver is actually better than gold for long term investment.
Somewhat off topic ,but,they mention silver in the article so...what do they mean by "high beta"?
"We continue to see silver as “high beta” gold. Silver itself was up
4.4%, and our favorite silver equity, Silver Wheaton, was 8.1% higher on
the day"
Cheers.
Gee only been pointing out gold is expensive and silver is long term cheap for months and months and months now on this thread.
Thanks ,sinner
I get it now Beta is better.
the spike looks dodgy - until you put it in context - sits perfectly in the up channel
Massive unwind of global positioning last night (from AUD, EUR, GBP, Gold, S&P etc).
That's all the gold move was IMO.
Based on the huge liquidation seen on the drop in yesterday’s open interest ( over 21,000) plus today’s exodus of weak-handed longs, the market has seen a rather sizeable drop in the overall long side exposure. Since we are now approaching the rollover period when funds will move out of June and into August and even December gold, we might have to wait another couple of weeks before we get a serious effort to the upside (that is assuming the status quo in Europe does not change – it could worsen). The condition of the world’s financial system is so tenuous that it is not beyond the possibility of gold completely putting back on in one day what it took off during a previous one.
I heard a few weeks ago that India was probably going to substantially reduce it's gold demand for their gold buying (wedding) season if the price stayed high.
A bit of a wind back now might be just the tonic to kick up their demand too, getting half way into their wedding season.
Seasonality suggests a bottoming in July followed by a run into January. That, though, is based on the past... This year, if there's a crash, the safe haven will once again be the USD -- which to me is counter-intuitive; however, 2008's DXY and GLD show this graphically. As does gold's rise subsequently, which seems intuitive.
The impact on equities seems to be in proportion to size, ie. the bigger you are the less you fall. The biggest though must always be on the prowl for ounces just to keep their at resource par; and they've had great free cash flows recently. This should bode well for the explorecos except for a predatory takeover bid from an unreasonably depressed share price.
Good Luck
S X
Seasonality suggests a bottoming in July followed by a run into January. That, though, is based on the past... This year, if there's a crash, the safe haven will once again be the USD -- which to me is counter-intuitive; however, 2008's DXY and GLD show this graphically. As does gold's rise subsequently, which seems intuitive.
The impact on equities seems to be in proportion to size, ie. the bigger you are the less you fall. The biggest though must always be on the prowl for ounces just to keep their at resource par; and they've had great free cash flows recently. This should bode well for the explorecos except for a predatory takeover bid from an unreasonably depressed share price.
Good Luck
S X
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