Gold has broken through the $1,200 level on its way down.
I hesitate to say basement, so I won’t.
This isn’t the first time Gold has spiked. But when it started down last time, you couldn’t sell it. It dropped from $800 to $300. That’s a drop of 62.5%. It hovered around $300 for decades. This time it has dropped from $1900 to $1200 (41.6%). If it goes as low as it did the last time, it will bottom out at $712.
Remember I never give investment advice. I just think out loud. But I wouldn’t want to be India or China right now. They own massive amounts of gold with no hope of liquidating their position in one piece. Any attempt by those countries to sell will drive the price down faster and further. Their buying spree was probably part of the pressure driving gold to the all time high this time around.
If they’re listening to the pundits, China and India aren’t as smart as we thought.