Gold !

It takes a huge amount of bravery to step forward and say that the gold price has reached its top; even though the price is five times higher than where Mr Gordon Brown decided to liquidate the country’s gold reserves! There have been signs that its relentless climb of the last four years is faltering but is it just taking a rest before continuing as the investment of choice in such uncertain global economic times? Silver has stolen the spotlight in the last couple of weeks with a dramatic increase in trading margins catalysing a cataclysmic liquidating exercise, precipitating in a 30 percent drop in its price since the beginning of this month! That would normally suggest a sector downgrade driving the other precious metals lower, but for those who fail to find a safe haven investment in uncertain times, then maybe Silver positions will be rolled into gold. I have seen plenty of trading days recently where Silver has been sliding with gold rallying, so there may well be some truth in that theory. From a technical perspective it is probably a while away before the chartists report a reversal on the gold rush and the professional traders generally can’t help but stay long.