From Gonzalo Lira:
For those of us watching the gold markets – that is, those of us anticipating the collapse of the euro and the eventual collapse of the dollar – the last week has been a scary ride: Gold has fallen over 8.6%, from a high of $1,730 on December 7 to $1,580 on December 14.
"WTF???" I can practically hear everyone say. The fundamentals would point to gold being a safe-haven play – it should not be falling: If anything, it ought to be rising.
But a fall of 8.6%? In a week?
The first thing that pops into my head is, Don't Panic!!
The second thing that pops into my head is, This is to be expected – and is only a temporary pullback.
Let's take the second notion first: The reason the fall in gold is to be expected – and the reason it might well fall farther – is because of...
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