Gold, Silver and the Great Unwind: No Conspiracies Here

Michael Shedlock submits: What's happening with gold should be no real surprise. Although I have stated many times that gold is money and gold should do well in deflation, and we are in deflation, in the initial stages of deflation, leverage in everything is reduced by force. There are thousands of hedge funds, pension plans, and individuals over-leveraged in a massive bet against the US dollar and US assets in general. Many themes of the past 7 years are now being unwound. And one would expect leverage to be forced out in deflation as credit simply dries up. I call this the great unwind.Complete Story »