With Citibank becoming the latest victim for an economic Bail-out the Gold market soared above the $800.00 dollar level. This is a perfect scenario of what is to come. With Government agencies trying to support the U.S Dollar and investors selling the Stock market the Gold has had trouble holding gains. However, with all the economic woes that I believe are still on the horizon I’m very Bullish Gold.I believe there will be more negative U.S Dollar news than positive news in the up-coming months. Such as unemployment,building starts,General motors, and the American Auto industry in general just to name a few.
The Bail-out of Citibank is an absolute necessity . The ramifications would be tremendous not to do so. Allowing a Mammoth Institution such as Citibank to fail would devastate an already battered financial sector not to mention the impact on the crippled economy.These are very nervous times. This economy is affecting everyone from Wall Street to Main Street.
In my opinion this economic climate warrants buying long term Gold spreads. I will continue to price Bull /Call spreads and use the knowledge that there is no quick fix
to this economies woes.Gold is the “SAFE HAVEN”
Mike Daly /Superfutures