For gold and silver investors this has been one of those weeks when you just wanted to bury your head in the sand, weep, then re-emerge in six months time. Many of the most unemotional traders I know have been wailing like bereaved heroines from a Greek tragedy, while others have been seen approaching strangers in the street and asking them for a hug.

In typical fashion, gold and silver have not been playing to the script.  A war breaks out between Russia and Georgia. You’d expect gold to rise. But the opposite happens: we get one of the most violent sell-offs in recent memory. Gold breaks virtually every technical support level. Those on margin are forced to liquidate and the decline accelerates.

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