You would think with all these rising bond yields, talk of a government ratings downgrade and the Fed printing money as fast as possible that gold would really start to break out. But basically it’s been a snoozer.
Maybe it’s because more people are thinking of gold as something you sell to raise cash in hard times, rather than something you buy with cash to prepare for harder times. Certainly all the Cash4Gold ads on TV suggest there’s a lot of demand for green cash. And those other ads, where the guy keeps saying “Real Government Gold” over and over again, complete with images of nuclear terrorism, mainly makes the seller look desperate.
Yesterday, on one of those ground-moving-underneath-your-feet kind of days, the shiny metal didn’t do anything.
To be fair, it did move up nicely the week before, from just over $900 to around $940 an oz., though we wonder how much of that was speculation on an economic recovery in gold-crazy India, which also saw a 17% rise in its stock market after their election.