Democratic Underground - Deleveraging, unwinding, deleveraging.

Reply #17: Deleveraging, unwinding, deleveraging. [View All]

SlowDownFast

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Mon Dec-01-08 10:32 PM
Response to Original message

17. Deleveraging, unwinding, deleveraging.

Edited on Mon Dec-01-08 10:40 PM by utopiansecretagent

Hedge funds/investors selling EVERYTHING - including precious metals positions - to meet cash demands/requirements.

The reason for platinum near-parity with gold is that gold IS HOLDING UP BETTER, with it's history as a store of wealth during economic hardships.

Look at any stock or commodity and their recent declines (due to deleveraging) and compare their losses to gold's.

Gold ain't really a commodity - just ask anyone in Switzerland who is able to go to any one of their local banks and trade Euros, dollars, etc for gold bullion and vice versa.

Not saying it's not good to hold platinum or that platinum will continue it's downward slide into the abyss (I believe when commodities start to climb due to inflation - after this deflation bit - platinum will climb with them), but put simply: GOLD IS BETTER.

Gold and cash.

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Reply #17: Deleveraging, unwinding, deleveraging. [View All]