It’s decidedly contrarian. If a contrarian investor is someone who deliberately decides to go against the prevailing wisdom of other investors, shorting gold certainly fits the bill. Right now, everyone else is buying gold, or at least recommending it. If you have any doubt we’ve reached such fever pitch levels, consider No. 2.
The infomercial- commercial factor.
Every other commercial on Cnbc, fox business news is about the benefits of investing in gold. ( Reminds me of the Top of the Real Estate mkt!
The best indicator of a turning point for any investment, in my experience, is infomercials and commercials .
If an investment gets so popular it invades the pre-dawn hours with non-stop but-wait-there’s-more offers, it’s time to get out. And that’s exactly what’s happening now. So much so companies like Cash4Gold.com are invading primetime television. They even splurged for a Super Bowl ad spot. And they recruited washed-up celebrities Ed McMahon and M.C. Hammer to boot. In case you forgot, the Hammer filed bankruptcy in 1996. And Eddie boy almost lost his 7,000 square-foot, $6.5 million Beverly Hills pad to foreclosure. No offense, if you take investment cues from these two, you deserve to lose money.
I disagree with you long term, but you might be right short term. Commodities in the parabolic stage ofthen have sharp 5-10% drops. This happened in the last major gold move in 1979-80--there weree seveeral 5-10% drops. At $1,380, this means that at $138 point drop (maybe in one day) in gold is possible on some news. For example, what if the dollar rallies for some reason? Gold would plummet. But longer term, I am bullish on gold but ESPECIALLY silver.
Contrarian against the actions of the fed makes no sense to me. They are in an effort to kill the dollar and they are doing it. Don't fight the BIG GOVERNMENT they will win every time. They have killed all the shorts for months.
1) The poster is a paid basher who's Yahoo ID is recent, but I will listen to his/her infinite wisdom anyway.
2) I believe anything that the Obamament says and will execute it to their exact directions.
I agree. Gold longs have gone from humble winners to arrogant braggers. Everything is "LMAO", "Idiot", "Moron", "This will keep going straight up", "Next stop 1,600 with no problems".
To me, that is one of the many signs that we are at an interim high. The drop will start tomorrow.