Okay, so by the Asian open a deal seems to be essentially done. Precious metals take a dive for a day or two and then folks begin to realize that this sea of paper money will only cause the precious metals to skyrocket in value, keeping pace with the insatiable money printing. Yes? No? Time to get that sidelined cash back into the madness early this week?
reports of debt limit deal will cause precious metals to do what?
It seems clear that any hint that a deal is in the works immediately sets the 'risk on' machine in motion and the PMs take a dive. Doesn't matter whether it's organic trades made by true believers or yet another monkey raid, the results are the same.
What you have to ask yourself is, once the deal is announced, will ANYTHING have changed in the fundamentals of why we swap our FRNs for physical?
The political games are just that and no more. When the games are over and the lights come up, the sheeple will file out into the dirty, deserted streets, pilot their government-motors SUVs back to their government-guaranteed houses and sleep contented that their side won the day. They won't notice the dark clouds on the horizon, any more than they did before all this made such good watching on MSM-vision.
The machine will trade on any news (even if it is gold positive) and try to bash it down immediately. Their game is to make you believe that whatever news that has come out is bad for precious metals and scare you into selling. Of course, we all know better but it will work on the newbies until they have survived their trial by fire (as we all have).