“Woe to the land whose king is a child and whose leaders are already drunk in the morning. Happy the land whose king is a nobleman, and whose leaders work hard before they feast and drink, and then only to strengthen themselves for the tasks ahead”. (Eccl 10: 16-17)


"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat


In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people. Source – The Declaration of Independence

Tuesday, March 15, 2011

Gold Temporary Victim of Hedge Fund Money Flows

Don't be unecessarily alarmed by the behavior of gold today. We have seen this before during times of hedge fund algorithms gone wild. It is the result of money flows, pure and simple. Once the machines are done their thing, the price will immediately rebound. There are very strong buyers who are more than content to let the funds sell into their hands.

Let's see if the support level down near $1380 can hold old yeller on the downside.

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2 comments:

  1. Am a buyer today... we'll see how the market reacts - may be a short-term trade or hold for a few days. I think G/S will start to get a bid at these levels.

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  2. My hopes and prayers are with the good people of Japan.

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