The precious metals sector is taking a hit during todays trading as Europes problems begin to implode.
Angela Merkel is at the helm of the only country in the EU that has the ability to save the situation across the pond, but the price at stake is the financial situation of her German citizens, and a soon to take place if all goes well, re-election.
Merkel has already made it very clear… hands off of German gold. She is currently prepping EU members about possibly losing thier sovereignty. Together with Nicholas Sarkozy, they have created a plan that would automatically penalize those countries that go over budget, and would force members to amend thier constitutions to accomodate a balanced budget rule.
From the mouth of Sarkozy;
“If there is no deal on Friday, there will be no second chance.”
As Europe get’s in trouble, everyone runs home to mom and dad, the US$….but mom and dads house isn’t exactly stable…markets are down.. DJIA -192, Nasdaq -56, S&P -26.6….
Precious metals seem to be at a steep discount considering everything going on…COT reports from last week show extended longs and reduced short positions from the commericals…it’s metals season.
Happy Holidays everyone!
A great read on the topic can be found here;