This morning’s economic reports out of China show a slowdown in growth in one of the fastest growing economies in the world. Gold, already under pressure due to the fact that Cyprus might sell its gold holdings as part of its rescue process, is in the spotlight. We see this as a correction within a longer term bull cycle. While there has been a movement towards slowing the printing presses here in the U.S., as the fed minutes showed last week, the fundamentals of gold are still in place. Deficit spending continues as well as the debasement of currencies across all the developed nations; therefore, we believe that gold after this correction will resume its upward movement.
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