Gold Above $1,400 on Syria Concerns, Taper Debate
It never ceases; the stupid reasoning they assign to gold’s price movements. Any gold bug pumping you about global political strife and gold is to be tuned out immediately. Any gold bug pumping you about anything even remotely religious is to be tuned out immediately. Any gold bug pumping you about Indian wedding season is to be tuned out immediately. Any gold bug pumping you about gold and this utterly over done ‘taper’ debate crap is to be tuned out immediately.
Gold is an ancient monetary relic that is brought to the forefront periodically over time as a value anchor when hubris addled societies go too far in their leveraged money experiments. Period. Its investment demand is based on the macro monetary and market backdrop.
Just as it was important to tune out the promoters, pumpers, hopers and false story believers when the price assigned to gold’s value was being driven downward, it is just as important to tune them out on the way up. There will be selling opportunities – not necessarily for actual gold itself, but for related trades – on the way up. Things to look for include chest thumping by gold “community” leaders, overall sentiment, significant technical resistance points and of course idiot headlines like the one above.
I think this is a real bull phase in the precious metals. But these are attended by some of the stupidest rationale all the way up and a b/s detector is of utmost importance, bear phase or bull.
There, now maybe I can finish my coffee and get in a better mood. 🙁
[edit] Worse headline of the day…
Gold Driven into New Bull Market on Syria Fears
This is utter bullshit.
