They got the gold price news about right. But haven’t told the whole story.
Main reason gold’s backsliding today - Dollar fell about 2% on international currency markets overnight..
Reason for Dollar’s strength - Yields on Treasury bonds are soaring. The commonly watched 10-year jumped about 10 basis points overnight as global stock markets rallied. Now at around 0.93% - the highest in many months.
Reason rates spiked - There are many. But the vaccine news suggests a notably higher inflation outlook as global economies emerge from pandemic. No doubt, some of the move in bonds is also attributable to the Biden victory and likely increased government spending.
Gold is nearing a $100 loss for the day, down from around $1950 Friday. Miners look to be down 8% for the day at the moment. But 10% by day’s end wouldn’t surprise me. Points to the risks of trying to play the precious metals markets.
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Bottom line, from my point of view, however - It takes a strong stomach and a certain degree of conviction to mess around with the miners. 6% swings in one day aren’t to be taken lightly. 30-50% 1-year swings sometimes occur.
- Warren Buffet
https://forbes.com/sites/robertberger/2020/08/28/warren-buffetts-gold/?sh=24cebf506a63
The 1-oz K-Rand weighs a bit over 1 Troy ounce, as a small amount of copper is added for hardening and giving the coin a distinctive tint. Do I regret selling them? Yes. I value aesthetics - be it in art, sculpture, architecture, coin mintage or precious stones & metals.
“Beauty is truth, truth beauty” / John Keats - Ode on a Grecian Urn
So anyway you know I sold the miners but I couldn't resist the abuse and bought GOLD on the Nov. 9th drop. Can't wait to get my tush handed to me. (p.s. Mr. Buffett is a big holder).
Actually, I took a few pennies off the “gold roulette table“ this morning on a slight bounce today. Generally been pulling risk out of all my spec positions this week & building cash. Already been a good year (at least for most all of us) - so why gamble when you don’t have to?
Don’t care for the smell of things in Washington, plus the Covid has gone wild everywhere - and up here in northern Michigan the past week or two. Admittedly, those factors might possibly be good for gold in some perverse way - but not for equities.
Good luck with your latest move.