All That Glitters Ain't Gold...Revisited

A friend of mine was quoting a Japanese proverb to me the other day, which translates to something like this: Jaywalking is "safe" as long as all of us do it together, at the same time. That's a bit like what's happening in the gold market. This is also one of the reasons why, a few days ago, I called for shorting gold as it was spiking vertically higher on some pretty obvious panicky-type of overseas buying. Herd mentality rules, but even more so in December when routine moves are exacerbated by people ganging up obsessively on the bid or offer side of a particular asset class. Gold spot should bounce from somewhere between the $485 and $495 level, but the exact price would very much depend on where the herd takes it in the last 2 weeks of December. Savvy traders usually avoid trading during this time, unless of course they have a death wish.