Gold has breached its 1600 $ level causing its fans and investors plenty of heartbreak and losses.
In an interesting article way back Sept, 2011, Bill Bonner argued that:
Gold has had a spectacular 11-year run. It’s time for a rest for the metal…and a test for the metal lovers. That’s just the way it works.
Markets and lovers always test their admirers. Gold should be giving its fans a test…before moving in the final stage of the bull market.
A test here means a 50% retracement from its peaks…that’s around 1200$ levels.
If such a scenario comes to pass, both Muthoot and Manappuram will be slaughtered further in the markets.
I
