Euro down, good days for gold and silver investors

The Euro started its way down after the French Presidential election created a mess in expectations on short-term European policy. The danger of not very conservative Sarkozy being replaced by left utopist Hollande motivated traders to sell Euros. Additional uncertainty comes from the Dutch government problems. The forthcoming weeks will be dominated mostly by political and less by real economic factors. I think ahead are good days for investors in gold and silver, as these commodities will fluctuate. Just as at the moment - there will be low prices conditioned by rising of the dollar against euro. But the general uncertainty and the search for safe haven assets will pump back the prices up. So clever investors will succeed in profiting by the movements. My advice is to buy gold at $1620-1630 and sell at $1650. Then wait for a new down to $1630 and repeat. I don't advice short deals as gold can at any moment skyrocket above $1700 due to fundamental factors.

April 23rd 2012

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