A needed correctionThe precious metals correction is good as it allows us to pick up a few more ounces of the physical stuff. The fundamentals haven't changed though...the debt crisis should move PMs up to much higher highs. I think the press exacerbates the situation, ranting on about "rumours" of China increasing their interest rate even though it would be a tiny increase should it happen. The power of media...
I wonder how the US will handle their debt situation in the long run? Some have suggested a debt default as the most likely scenario. People have been talking about this for a couple years now. This would involve redeeming the treasury debt at pennies on the dollar and basically skrewwing the American public not to mention those countries that are creditors to the US. Once this happens, the price of gold will tank. Until then, I would think that gold will be very strong.
ESO down to 9.5 cent today... I'm already in with a pretty good position but if you're not, load up. When gold bounces back, this should drive ESO up to new highs…