While silly American democrats and republicans have fist fights in the street as government debt becomes truly insane, Chinese gold-oriented citizens prepare for their biannual (twice a year) “Golden Week” holiday.
I’ve already seen numerous headlines questioning whether this is the end of the gold rally. Hardly. Corrections such as this are normal and healthy. They’re a part of gold’s DNA of volatility.
After announcing a surprise 3.5-fold mining extraction tax increase in Russia last week, the government slightly reversed course. Silver mining will be excluded from the tax and new mining projects will also be shielded.
Gold is good and targeting much higher levels, but the Handle making is actually a correction to clear the riff raff from the investor base before that rally.
