There are some positives for gold: 1) Most of the weak hands have been scared out of gold 2) So, a falling stock market will not have much of an impact on gold (ie gold will not be heavily sold to raise cash. Gold has already been sold) 3) A falling stock market will mean more Fed intervention which will be gold positive (ie more QE) 4) The economic fundamentals supportive of gold are still in play (ie enormous sovereign debt and massive money printing) 5) The lower gold price is spurring buying in India and Japan 6) Most miners have a total cost of production at $1300 or above implying a slow down in production if the price does not increase (ie lower supply). Some miners, even the large cap ones will fail, and that creates opportunity and higher prices for those that survive.
I think this gold bull market has long way to go on the upside. Just wait until the CBs are really tested by a recessionary global economy which implies rising sovereign debt.
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