05-08-2012, 08:46 AM
The talking heads actually convinced the markets yesterday that the election outcomes in Greece and France were of no issue. Mmmm , European equities down sharply today. US futures look weak and Euro, pips away from breaking 1.30. Gold again right at significant support in the mid $1,620ís. silver now clearly through the $30 level. In silver there are incidental support levels, but nothing major until $26 ish. All the gold bugs cried heresy yesterday when Buffet suggested it was a worthless asset. I donít agree with him. Gold is as good or bad as any investment. Buying stocks in 2002, was a bad idea. Buying them in 2008 was very smart. Real estate today much better than buying in 2006. Gold at $400 great , at $1,900 not so smart. In the short to medium term 0-9 months, it is conceivable that the Euro may test 1.10. strong dollar not good for metals. But I have zero faith in the US government coming through, which will again signal weakness in the dollar and stronger metals. The basis of holding metals on an adjusted cost base as a percentage of a diversified portfolio still and will continue to make sense.