Tuesday 9 November 2010

Arabian investors have more faith in gold and silver than local stocks � ArabianMoney

Yesterday local Arabian stock markets sold off and overnight gold and silver prices rose sharply as investors appear to have concluded that after QE2, and more Fed money printing to come, precious metals are the no-brainer investment.

There could still be pull backs in precious metal prices, particularly if global markets continue to sell off as they did yesterday. As ArabianMoney forecast last week QE2 to some extent means that all the good news is now reflected in equity prices and there is a question mark over what might take them higher, or whether the Fed will want to drive them higher.

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