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Gold Going Down And No One Cares

Commentaries & Views

Gold continues to fall with the occasional bounce, but no one cares. There has been no hand wringing, no panic, just matter-of-fact selling. The gold and silver manipulation stories continue to be around about the big banks shorting metals, trying to drive prices lower.

The cryptocurrencies have started to rally and take away some of the alternative monies that usually are reserved for the metals. There is no question that Bitcoin is in direct competition with gold as a stored asset class. Can cryptos and metals coexist in what many consider a safe place to store money?

The competitive battle between metals and cryptocurrencies should not hinder either asset class. Right now, the biggest detractor from both is the U.S. equity market. With the VIX crumbling and investors chasing yield, complacency is front and center. Although we expect the metals to test lower prices, there will be levels that investors should look to buy. The first level is $1,180 in gold for a small investment, understanding that you may have to average in.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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