Reportedly, the metals desk and analyst, Oscar Cabrera at Goldman Sachs recommended buying gold. So, imagine their surprise when the bank recommended using a short exposure in gold, expressed in U.S. dollars, “to capitalize on a gradual relaxation of credit concerns in the financial sector over the coming months.”
Some one has some “splainin’” to do.
The bank expects an easing on the fears that have paralyzed credit markets for the recommendation. Think about that for a second. They’re expecting credit market woes to cool in 2008, despite the trillion dollars worth of ARMs resetting over the next year, and despite Fed cut hopes, which will do nothing but temporarily re-inflate a deflating credit bubble.
Yeah, that’s what I’d do. I’d short gold. Well… if I wanted to lose money bad enough.