It only took 7 sessions to take back a sharp $200 plunge about a week ago.
click on chart for sharper image
In 2008, gold sold off with everything else but treasuries. Miners were crushed. This time I expect gold and miners to do much better in a big market decline, perhaps even rise.
Other Currencies Look Sick
The Euro, the US dollar, the Yen, and the Yuan all look sick for differing reasons. The Eurozone may break apart, Bernanke is likely to double up on QE and the US deficit is out of control, Japan has a horrendous debt problem, and inflation is out of control in china as is China’s infrastructure spending and housing bubble.
The one thing the Euro, the US dollar, the Yen, and the Yuan all have in common is competitive currency debasement by central bankers hoping to increase export to everyone else. Mathematically that is impossible.
Once currency stands out (and it’s not the Swiss Franc). It’s gold.
Mike “Mish” Shedlock
Click Here To Scroll Thru My Recent Post List