"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

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

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Monday, May 16, 2011

Gold still rangebound

Gold is still running into selling above the $1500 level. If the bottom of the recent range is to stay intact, it will need to encounter good buying above $1480. If that were to fail, it will drift down towards $1460 where I would expect it to find some good support as sovereign debt issues in the Eurozone combined with US fiscal and economic woes should bring in value based safe haven buying.


  1. Question for Dan - as the gold and silver futures were getting smashed down all day today after the equity market first hour, the GDX did not break lows even though the futures did, and they did not even break the lows of the morning session. However, the really small gold stocks did get crushed, such as KBX and CGR, among others.

    Now usually the gold stocks lead the futures, what does it mean when the larger and intermediate gold stocks are much stronger than the micro gold stocks?


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