Markets Are In Panic Mode

October 7, 2008 | By | Reply More

At 13.45 ET today (Monday) spot gold had risen to $867.90 an ounce, having leapt to over $874 in the previous six hours.

At the same time gold miners, in the shape of Market Vectors Gold Miners (GDX) managed a fall of $1.88 from its previous close.

The only logical conclusion is that the markets are in such panic mode that logic, or call it rational thinking, has entirely left the thought processes of market players.

Every fundamental indicator, and depending on the analyst’s preferences, many technical indicators, point to a massive surge in spot and forward gold prices, not to mention silver following suit.

Central banks, government agencies, Uncle Tom Cobly and all, will not be able to continue to contain the gold price to protect the dollar. It will not happen. Market forces will prevail in the face of recent events, let alone today’s market melt down, and will send the only realistic wealth protection asset to the stratosphere.

When, not if, that happens, the major gold mining producers will catch up in short order. With gold production continuing to fall off there will be opportunities to make huge profits in the downtrodden junior mining sector as the cash rich majors eye up M & A candidates.


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Category: Gold

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