It is interesting to note that gold sold-off with the Oct crash, but then came back to test it’s 1000 high and has held within 15% since then. What else has done this? Gold does well when systems and money are under stress. Gold tends to go down in boom times and up when the systems are shaken or stressed. If we experience another liquidity crisis, look for similar action from the Oct crash.
The important thing to keep in mind is the relative strength of gold…i.e..what other assets are doing in relation to it. It’s gaining in relative strength since about 3 weeks ago. This portents trouble in the markets. And will keep producing gold miners very profitable for some time to come.
