by David Schectman, MilesFranklin.com:
Here is an excellent article from Uncommon Wisdom below. It makes one wonder why the hedge funds would sell gold when Bernanke states that the Fed will continue with QE or another form of adding liquidity into the system for a long time. This should be gold friendly, but as we’ve seen lately, no matter what the news, it has no positive affect on the price of gold.
Let’s just face it; for now, the funds want to be in the stock market and they are either ignoring or shorting commodities, gold and silver. It makes no sense, but as long as the paper market is setting the price and there is enough gold to deliver to China and the other buyers in the Far East, not much will change.
Investors are being steered into the stock market because the interest paid on deposits and bonds is negligible and precious metals are out of favor – there is no place else to go.
Please follow SGT Report on Twitter & help share the message.