Gold Falls by 1%; Pandemonium Breaks Loose

Gold is trading down today, after soaring for the better part of 2016. I guess it’s due to the rise in the dollar, which is higher by 0.25%. Nevertheless, precious metals are down by a trifling today, just about 1%.

What is the response by the even handed folks trading in and out of gold stocks?

Complete and utter chaos.

As a whole, gold stocks are off by more than 5%, as investors run around with their heads on fire in search of a bucket of water. For the year, these stocks have gone up triple digits, even though the yellow metal is up much less than that, higher by 20%.

I suppose there’s a multiplier effect of 5 in this idiotic sector. For every 1% move in the underlying commodity, there is a 5% move in the stocks. Makes sense.