Why gold won’t stay down

Posted by MSN Money via Peter Grandich

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Something curious is happening in the precious metals market.

Fundamentally, there couldn’t be a better time to own gold and silver. But technically, the shiny stuff has just been hammered, inexplicably suffering a 1987-style plunge last month. Did a hedge fund blow up? Are policymakers pushing on prices to keep inflation expectations down? Are computer trading algorithms causing problems? We just don’t know.

Now the question for investors is: Has the best buying opportunity we’ve seen in decades arrived even as most of the market focuses solely on stocks, or is gold a lost cause?

In fact, if the crash continues, gold’s role as an important market signal points to two economic possibilities that would take many people by surprise.

Here’s where I see gold headed and why.

…….read more HERE