Club Mulgoa

Wednesday, March 14, 2012

POG

As an atomic trader, I am not privy to information about major movement in gold. Part of the reason for POG to fall quickly recently is because traders are bailing out after gambling on QEIII from the Feds. They expected the POG to go up but instead there was no free lunch from the Feds so they were caught short. Hence, they have been liquidating their gold 'holdings' to minimize the losses.

When these gamblers have cleared, then gold will follow its demand-supply equation. So while the POG is down, I reckon it is a good window for topping up gold stocks. I have already topped up on PRU and hope to collect some ABU as well.

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