09 August 2011

Storm before the calm?

London's burning... Rome's burning... well, Rome's not literally burning but figuratively it is. The US is smoldering after last week's fire (both with the falling DOW and discounted credit rating). How much of the worlds unrest, be it political or economic is effecting the gold rally? Hard to say, the euro economies certainly are driving investors to look at safe havens.

Which leads me to ask, do we have a instability bubble? When things settle down, will gold's price settle at a lower level? Certainly look for profit taking, but the downside may be minor in the wake of economic uncertainties..

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