Here is an updated Gold chart as of early this morning. It is clear, that on the daily chart this market has broken it's uptrend.I am sure there are some out there who cannot believe the overnight implosion of this market. This price has dropped $80/ounce in 7 trading days! However, those of you that paid attention to what I was saying about the commercials getting to the short side of this market, were prepared for this.
This, along with the recent selloff in the stock market did not "come out of the blue." We had the proper advance warning from the insiders, that they were exiting their longs.
For those of you that still think GOLD is a solid long term investment, this does not necessarily invalidate that. Those are big picture economic views that may or may not be correct. The point I have been making all along, is as follows. Do not just run out blindly, and buy something after a parabolic move, reversions are almost a mathematical certainty.
4 comments:
Chris, I so much appreciate that you're sharing all this with us.
What is the position of the Commercials now? Are they still short?
They have moved up slightly from a strong short position. So, they are not nearly as short as before. My newsletter that you will get right after the first of the month will have thorough coverage of the Gold market.
It is too soon to tell if they are moving back to the long side. I suspect they will if we get a strong selloff, but we will have to wait and see.
Two concepts here "gold as an investment" and "gold as a haven of safe storage."
As an investment, I would never hold it. But as a store of wealth, it has a place in my portfolio.
I tend to look at gold as an indicator of the amount of printed money in circulation. If gold jumps to $1000 is that actual money, or is it somebody sticking a water hose in the whiskey bottle?
Sounds like you have a good perspective on things Jim. I have just been trying to caution people, to be careful chasing short term extensions like this.
Post a Comment