Thursday Outlook: Gold, Oil Steal the Show

Gold bugs were swarming Wednesday. In a stock market “crash” like 1987, gold stocks can sell off like other stocks - when major sell programs hit the tape, they’re just stocks in the basket to sell. But perhaps things are different if the market “grinds” lower as investor confidence wanes and SWFs [Sovereign Wealth Funds] decide to buy miners as a hedge against a declining dollar. It’s just a thought. What would you do [think China and OPEC for example] if you were operating one of these SWFs and were earning your revenues in dollars and being coerced into buying some crummy bank stocks? You’d want some hedges, and rather than just buying gold why not own some producers or buy them all? This could get interesting.

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