Gold is pulling back to long term support and is able to be purchased at a discount. Investors may be seeking riskier assets due to fears of inflation and higher interest rates. Right now industrial metals such as copper/ nickel, oil and blue chips are outperforming due to their value of being hedges against inflation and represent the riskier assets.
Gold and silver which has in the past represented risk off is still in consolidation mode. Eventually investors will realize that the monetary metals can do well in both a deflationary risk off environment as well as an inflationary risk on environment and the trend will turn significantly higher as it has for the past decade. Gold is actually finding support and presenting a potential discount buying opportunity. It is important to accumulate when the public is disinterested. Right now, Pandora, Facebook and Apple are the current fads, while gold is being overlooked and placed on sale by Mr. Market.
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Gold and Silver Find Support At Long Term Uptrends, Significant Bargain In Miners
