Monday, May 10, 2010

When You See Something Like This:

From MarketWatch
The European Central Bank may have sacrificed its credibility in a headlong effort to save the euro, economists said Monday.

Just four days after ECB President Jean-Claude Trichet said policy makers hadn't even discussed the purchase of euro-zone government bonds on the secondary market at their monthly meeting, the central bank on Sunday announced it would do exactly that.
It is not a day gold should be down in price. Yet, it is.

You have to have a very poor understanding of what the ECB is doing here, basically announcing that they will print money to support the PIIGS. I find it extremely difficult to believe all the purchases will be sterilized.

Gold is the buy of the day.

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