Gold Going Down And No One Cares
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.