When sentiment is low is when Gold can bounce back
By BullionSupermarket.com Staff on Wed, 28 Jul 2010 19:19:46 GMT
Disappointed Gold Bugs may not need to wait long for a bounce
There's no denying it, Gold has been a disappointment to those holding it over the last couple of months, leaving anyone who bought it at the most recent peak nursing a 8% loss.
Here at bullionsupermarket.com we have seen the confidence ebb away in the press, just as some of the mainstream press seemed to be giving gold at least the serious reporting it deserves.
But seasoned Gold watchers will know that Gold can be a contrary metal and when sentiment is lowest, and the "hot" money has left, is when Gold can put in some of its most solid gains. And lets not forget the macro Gold / Dollar picture has not changed one bit. U.S. soverign debt is skyrocketing with no prospect of improvement in sight. Though the dollar has so far acted as a safe haven, its fundamentals over the longer term are deteriorating.
At BullionSupermarket.com we are at last seeing the secondary physical markets reset after a persistent period of high premiums, with Gold and Silver premiums coming back down to sensible levels. Fixed Price Gold ingots were trading at an average of 14% on Wednesday while fixed price Silver was priced at about 32%. Even more attractive Gold and Silver bargains were in evidence in auction lots.
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