Discussion Topic

Gold – Shape Changer, Mutant or Chameleon

March 13, 2020

Gold – Shape Changer, Mutant or Chameleon

You, like me would have scratched your head a few times in recent weeks at Gold’s price action especially against the wider flogging the stock markets have received.

You would have stopped scratching it once you realised Gold was a either a shape changer, mutant or a Chameleon. Frankly I haven’t decided which one yet, mainly because its possibly all three.

It shaped changed from being a safe haven asset to simply an asset to be sold in the fire sale. This caught many off side. Many continued to get caught expecting it to change back and thus far it just hasn’t. It will it just a matter of when.

If it’s a mutant, the above is still true but its changes may be a little more permanent than we suspect. This is the least likely scenario.

It’s certainly changing its colours to blend in with its environment. In a normal world as a safe haven asset it should have been rallying as the stock mkts melted. As we have witnessed it hasn’t. One suspects the colours will change back when it decides is the right time. For us trying to guess when that is, is like playing chicken with a freight train. Actually, it’s like playing reverse chicken. You can’t know if you are right unless you don’t jump out of the way and take the hit.

This may be an integral part of this game as when it changes colours it will change them just as fast it did before.