Sunday, October 9, 2011

Global liquidity is contracting but do not sell your Gold

Marc Faber : I think Gold has had a big move , and recently became very overbought , an dollar strength means like in 2008 that global liquidity is contracting and when you have a contraction in global liquidity it hits says industrial commodities a lot strengthens the dollar it hits assets prices and in 2008 the gold prices did not go down but the gold shares went down a lot and so it is conceivable that somebody will say copper is down this much gold is still relatively high I am going to take some profits on my gold positions , I am not selling mu gold because I think in the long run they will print money as soon as the markets in the world are down another ten twenty percent even the republicans will write a letter to the FED 'you have to ease' you understand ? now they can set back and say do not ease you have done enough but as soon as asset prices go down and the economy is weak everybody will again applaud the FED if the print money ....- in Reuters

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