Dump safe havens like gold, buy ‘value’ like banks, consumer cyclicals, SocGen says

[JohnQPublic]

Here we go again!

Dump safe havens like gold, buy ‘value’ like banks, consumer cyclicals, SocGen says (http://blogs.marketwatch.com/thetell/2013/06/07/dump-safe-havens-like-gold-buy-value-like-banks-consumer-cyclicals-socgen-says/)


My take- there are basically 2 possibilities:

1. The economy is improving. Therefore, I can get or keep and hold a good job, and thus would not need to sell any shiny stuff.
2. It is all an illusion, and the shiny stuff will be needed soon.

Either way, why would anyone purposely dump it (unless they were playing paper games)?

[gunDriller]

there is more counterparty risk now than in 2008.

the amount of credit derivatives has increased massively. i.e. much of the financial world is covering their bets with "insurance policies" for which there are no insurance reserves.

the people who created the debacle of 2008/09 are still in power, and/or have been promoted.


plus there's good old supply & demand. the Cartel's price beatdown can't hide the facts re. the absorption, by China + Russia + India + G-S.us members - consuming gold at a rate 2 to 4 times the rate of world production.

that the Cartel is willing to sell someone else's gold (Germany's ?) to buyers like China, in no way means that Gold is no longer needed as a world reserve currency.

to the contrary. Gold is one of the 2 best World Reserve Currencies.


my personal guess - central banks will start buying Silver, since it is a currency that can be used to buy Gold.

it's just a currency that has to be transported by train, or tanker, not airplane. :)