Recently Gold took a bit of a battering as many speculated the sell off was from the distrust of paper gold. Indeed a lot of gold bugs would argue that the paper market is not backed up with physical gold so you are better off selling your paper and buying physical. A lot has been written of Gerald Celente and other MF Global customers losing their money and failing to gain delivery of their precious metals.

In the middle of it all Roubini scoffed

“Gold again proves it is not the safe haven many had hoped for, breaking the 200-day moving average, the first time since 2009 and signaling that prices may drop to US$1400/ounce.”

But ZeroHedge has since put it so well 🙂

Well, since then as the chart below shows gold just took out the 200-DMA, this time in the opposite direction upside, having proven the recent drop was nothing but a buying opportunity as was suggested by the non-Ph.D. community, we assume that using the author’s logic, gold has proven that it is in fact a safe haven, and that since it is not going to $1400 it can only go to infinity…. Or is that us taking liberties with our lack of an economics Ph.D. a little too far?

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