One bad day and everybody's got their pants all in a wad. Gold is over bought in euros and extended in USD. It has also not even begun to correct and yet there is anxiety among the gold bulls and from a guy I really respect, Tim Knight, a hint of... not really chest thumping but maybe gold bug baiting?
The deflationists are on a hair trigger and simply cannot wait to come out and school the stoopid gold bugs and inflationists. The sons and daughters of Denninger will be heard - or is it herd - soon enough. The fact that most people (including inflation bulls and many gold bugs) still do not get the investment case for gold mining currently lining up is really very bullish beyond our deflationary impulse that I believe is in the process of manifesting itself.
