Gold and silver bounced back a bit today after that pre-meditated smashing that they took last Friday coincident with the Non-Farm Payrolls report.
I cannot stress this enough. China, Russia, England and the US are playing a game of strategy, a global 'game of thrones' if you will.
England and the US especially are playing the short game, the smash and grab. Russia and especially China are playing a longer game if you will.
Surprisingly, the West is also greatly lacking in empathy. We consider the others as our inferiors, so we tend to greatly underestimate them. And unfortunately the cult of power has persuaded many 'leaders' that obedience is a loyalty to which they are entitled.
I am sure the West has just as many capable and intellectually proficient strategic thinkers as does the East. The difference is that here they are on the political sidelines, working finance, or otherwise ignored.
This is setting up to be a much more interesting event than I had ever imagined it would be.
As an aside, you may do well to limit your exposure to the Euro as well as most equities for the short term here. We are entering a rather fluid situation in Europe, with repercussions that are difficult to discern for all the Western nations.
There is a movement to pre-emptively disband the Euro from several sources, and those who wish to continue to hold it together are rapidly losing ground. Will such a change be unequivocally good for the Dollar? I believe some think so. I am not so sure.
The global financial system is very interconnected, and still rather fragile in the States despite the enormous effort that the Fed and the government have placed on reforming leverage and excessive speculation out of the financial system. (NOT! LOL)
Have a pleasant evening.
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