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The Shocking Lack Of Gold Volatility

Jim Paulsen: “gold is the answer to any problem which keeps you up a night; inflation? Buy gold! Deflation? Buy gold!”

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Not everyone is bullish. Jim Paulsen, Chief Investment Strategist for Wells Capital Management has sat out the rally and says, gold is overdone.

“One of the problems I have with it is ‘gold is the answer to any problem which keeps you up a night’. That is, worried about inflation? Buy gold! Deflation? Buy gold! Deficits, Euro crisis, flash crashes, run on the U.S. dollar? Buy gold!” But, no near term catalyst for a big sell-off, more of a slow grind reaction to improving economic fundamentals may eventually shift the bias away from the “fear trade”.

Orderly commodity markets are an oxymoron – watch for a catalyst to move this market much higher or, much lower.

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