Nothing new here: it’s Friday and the gold price jumps.
How come?
Because shorts cover their positions as they are uncomfortable with the weekend coming.
And right they are.
An other uncertain weekend is staring upon us.
Will it be Ukraine or the ‘discovered’ trading loss of Merrill Lynch?
GM or GE?
The latter has fallen back to levels not seen since 1991, because this company fails to report bad news as it is. Bad.
GE is suffering from the Terminal Confidence Syndrome. When all rational approaches are doomed to failure, maybe Faith and the illusion of control, will carry the day
Back to gold.
Is it time to buy back some precious metals stocks?
We think it’s too early.
Due to leverage these stocks has to perform better than the price of gold itself.
It’s still not the case.
The ratio between both is showing this.
In the mean time: some companies, especially juniors have plunged so deep, that in normal times this would represent a screaming buy. Look to Linear Gold Corp (ticker: LRR.TO). This 22 million gold explorer has 19 million dollar cash in the bank. Ok, these stocks are small and risky. But since a couple of months in an uptrend.
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