The gold price
Gold Bull Market is Back! - 8 March 2010
Investor sentiment has switched, putting the Gold bull market "firmly back on track"...
BACK in December, I got spooked about gold, writes Steve Sjuggerud in his Daily Wealth.
In fact, I told my subscribers to sell their gold. We sold a position we'd bought back in 2003, when gold was incredibly unpopular.
What tipped me over the edge...? The morning that issue of my newsletter, True Wealth, was going to print, I'd already seen ads for gold on TV. I'd already heard ads for gold on the radio on my drive to the office.
And it was only 5:30am.
The financial data at the time backed up my anecdotal evidence. Investors were loading up on gold. And if you know me at all, you know that – as with any other asset – I want to Buy Gold when nobody is paying attention, and I want to sell when everybody is interested.
In December, everybody was interested. So in December, we sold our gold. The timing was excellent. The price of gold peaked for US investors in early December. And so did the price of Gold Coins. They have fallen maybe 20% since then, as have the precious-metals Gold Mining stocks we sold.
However, my opinion of gold has changed 180 degrees since December. It's because investor opinion about gold has switched, from remarkably bullish to pretty darn bearish, pretty quickly. Let me show you what I mean.
Back in December, the "sentiment surveys" showed investors were at highs for the year. Now that has changed. Two weeks ago, public opinion hit its lowest level since last April (when gold was at its lows for 2009, below $900. Now THAT was a time to buy). That's what we want to see.
Investors have also fled Gold Mining stocks since December, too. For example, the Rydex Precious Metals Fund saw its assets fall by more than half from December to today (from over $350 million to $177 million now). Traders like to use Rydex funds to chase trends. They were bullish on gold stocks in December. Now they've given up on gold stocks. That's what we want to see.
Meanwhile, gold's "price action" is just great right now. The Dollar has soared in recent weeks, but gold is soaring more. Also, investors who didn't want Dollars now don't want Euros either. They don't want paper currencies at all. They're Buying Gold.
New highs are part of bull markets, and gold is now hitting all-time highs in terms of Euros. That's what we want to see. Because the bull market in gold is back!
Ready to Buy Gold...?
BACK in December, I got spooked about gold, writes Steve Sjuggerud in his Daily Wealth.
In fact, I told my subscribers to sell their gold. We sold a position we'd bought back in 2003, when gold was incredibly unpopular.
What tipped me over the edge...? The morning that issue of my newsletter, True Wealth, was going to print, I'd already seen ads for gold on TV. I'd already heard ads for gold on the radio on my drive to the office.
And it was only 5:30am.
The financial data at the time backed up my anecdotal evidence. Investors were loading up on gold. And if you know me at all, you know that – as with any other asset – I want to Buy Gold when nobody is paying attention, and I want to sell when everybody is interested.
In December, everybody was interested. So in December, we sold our gold. The timing was excellent. The price of gold peaked for US investors in early December. And so did the price of Gold Coins. They have fallen maybe 20% since then, as have the precious-metals Gold Mining stocks we sold.
However, my opinion of gold has changed 180 degrees since December. It's because investor opinion about gold has switched, from remarkably bullish to pretty darn bearish, pretty quickly. Let me show you what I mean.
Back in December, the "sentiment surveys" showed investors were at highs for the year. Now that has changed. Two weeks ago, public opinion hit its lowest level since last April (when gold was at its lows for 2009, below $900. Now THAT was a time to buy). That's what we want to see.
Investors have also fled Gold Mining stocks since December, too. For example, the Rydex Precious Metals Fund saw its assets fall by more than half from December to today (from over $350 million to $177 million now). Traders like to use Rydex funds to chase trends. They were bullish on gold stocks in December. Now they've given up on gold stocks. That's what we want to see.
Meanwhile, gold's "price action" is just great right now. The Dollar has soared in recent weeks, but gold is soaring more. Also, investors who didn't want Dollars now don't want Euros either. They don't want paper currencies at all. They're Buying Gold.
New highs are part of bull markets, and gold is now hitting all-time highs in terms of Euros. That's what we want to see. Because the bull market in gold is back!
Ready to Buy Gold...?
Steve Sjuggerud, 08 Mar '10
Former stock-broker, mutual-fund vice-president and hedge-fund advisor Dr. Steve Sjuggerud is the founder and editor of True Wealth. Launched in 2001 and now one of America's best-followed newsletters for private investors, True Wealth also provides free analysis and ideas in the Daily Wealth email service.
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