Gold prices have finally stabilized after falling roughly 11% over the last week.
The yellow metal closed Thursday up 1.84% to $1,417 an ounce.
The reason for the recent drop in gold prices is unclear but some cite Cyprus selling its gold to cover the cost of its bailout as a factor or central bank manipulation.
Barry Ritholtz of Fusion IQ made a prescient call last December when he sold all his gold. He has recently been writing on his The Big Picture blog about the "New Great Rotation" from commodities into bonds (versus the "old rotation" from stocks to bonds).
In a recent blog post entitled "The Rules of Goldbuggery", Ritholtz noted the "cognitive dissonance" of gold bugs around the recent gold crash. He writes:
Read More »from 12 (Misguided) Commandments of Gold Bugs: Barry Ritholtz
"The reaction to Gold’s crash has produced some astonishing rationalizations. The refusal to acknowledge basic trading facts leads us to recognize that Gold bugs and traders have very specific rules that they MUST