Auguries - December 7, 2012 The Homer Simpson Plan Kevin Michael Grace
Gold was down (at press time) $27.20 (-1.6%) for the week to $1,700.10, and silver was down $1.24 (-3.6%) to $33.07. Bloomberg attributed the loss December 4 to the “stalemate in US budget talks [which] drove commodities down.” According to Bark Melek of TD Securities, “Gold is being sold along with just about everything else in commodities with the worries on the fiscal cliff.” GoldCore noted December 6, “Physical buying of gold bullion has increased on the dip”—more on that below.
We are all cursed with economic Alzheimer’s these days, and so few will remember that not 18 months ago, similar negotiations in Washington were regarded universally as similarly cataclysmic. At that time, the politicians decided they would postpone Götterdämmerung until the end of 2012. One can hardly expect a much different resolution this time around.