Bron Suchecki is head of strategy for the world-renowned Perth Mint. He went into an exhaustive explanation of why the precious metals markets have been in such turmoil as of late. The ability of large hedge funds and investment groups to pour money into markets at a moment’s notice, going either long or short, makes markets extremely volatile. In addition, these investors play a game of follow the leader which has them moving money based on momentum rather than market fundamentals. How much longer this behavior will last is an open question. Probably until it no longer works.
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