Minyanville on Gold
Amidst all the noise about gold prices correcting along with equities, and the “unwinding of the yen carry trade”, here’s an article from Minyanville that seeks to clear out myths about what affects gold prices. Excerpts:
- A simple glance at the yen vs. gold over the past year shows zero correlation between rallies in the yen vs. selloffs in gold.
- The last time we saw a rally in the yen that also coincided with a head fake to the downside in gold was back in December of 2005, which also happened to be the beginning of a huge move up in both gold and its shares.
If you buy this, then it’s time to set aside cash for those soon-to-be-launched gold ETFs in India.
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