There’s a precious metals dealer in my town that has, in recent years, been paying for very big ads in the local paper. Until recently, their headline read “Record gold prices? It is only the beginning!”
For obvious reasons, they’ve moved away from that headline, since it stopped being true, oh, about two freaking years ago. Now they’ve got a much smaller ad with a much different headline:
I think this mentality is no different than how beginning stock investors “average down” by buying a loser stock as it goes lower and lower in price (Pro Tip for newer traders: you haven’t seen it before, but yes, stocks actually can go down in value. I know it sounds strange, but in happier times, this phenomenon was not only frequent, but healthy).
I don’t know if gold is going to poop out here (the upper 1400s) or retrace a little more (the lower 1500s). What I do know is that I haven’t seen a setup this delicious on the short side in ages. Not only that, but that fucking con artist important market force B.S. Bernanke doesn’t have the same concern about artificially propping up gold prices as he does propping up, oh, let’s say for example, common stock prices.
The bottom line is that, yes, gold is on sale, and it’s going to go on-sale-ier. I’m going to be shorting it in size in the coming days. And in case you missed the first several dozen times I’ve mentioned it, my target price is somewhere between $1250 and $1300.
