Both Gold and Silver traded much higer before we reached the US debt ceiling in 2011. Again early next year we face this crisis. Congress will vote on rasing the debt ceiling sometime before March of next year. Gold and Silver traders are anticipating this move. However, with risk off and the US markets and Europe recession in play, the market fired back. Inflation is not a problem, deflation is a bigger risk in Europe, Japan and the US.
I traded Silver SLV ETF before the close of trade today. It is my belief the uncertainty in the markets these last few days has caused traders to carry trade to Gold and Silver. Resuming trade in equities will cause Gold and Silver to flatten around the 30 support line - or - if the market continues to go lower both gold and silver will quickly follow.
I traded Silver SLV ETF before the close of trade today. It is my belief the uncertainty in the markets these last few days has caused traders to carry trade to Gold and Silver. Resuming trade in equities will cause Gold and Silver to flatten around the 30 support line - or - if the market continues to go lower both gold and silver will quickly follow.