Gold is running on the Romney debate win as the momentum (momo) crowd is getting excited and aggressively buying. The momo crowd favors Romney. The logic be damned. It is indisputable, in my opinion, that a Romney win is bad for gold and silver.
Why is that? Romney has clearly expressed that he will fire Bernanke; of course, he cannot literally fire Bernanke, he simply means that he will not reappoint Bernanke as the Fed Chairman.
The premise behind the momo crowd buying gold and silver is Quantitative Easing (QE) engineered by Bernanke. If Romney wins, QE will be short-lived. If the momo crowd were to use logic, they would realize that a Romney debate win is a negative data point for gold and should be selling gold and silver. However, the gold momo crowd has never acted based on logic, and it is not a surprise that they are aggressively buying gold, especially ETFs GLD, IAU, GDX and SLV .
This column is not about politics in general, but only about how politics affects investments, specifically gold and silver.
A majority of pundits have called Romney the winner in last night’s debate with Obama. According to a CNN poll, 67% of the voters believe Romney won the debate.
But you have to remember. The momo crowd is not the same as gold bugs. It is quite different.
Gold bugs and the gold momo crowd are often confused. The reality is the differences between the two groups as I see it is stark.
Gold bugs tend to be well-steeped in economics, especially monetary policy. They understand the arguments against gold and silver…Read more at MarketWatch
