They are getting excited again, the gold ‘community’ that is. On the big bounce in GDXJ (juniors) especially, there is talk of bottoms, new up legs and even the potential Inverted H&S NFTRH has been charting since before I even heard of it anywhere else.
This may or may not be the case. NFTRH has been on the IH&S for many months now and I’ll be damned if the ‘callers’ are going to co-opt our theme. But insofar as Iraq has anything to do with anything, it’s ‘buyer beware’ on this hype.
Here GoldCore weighs in…
Why, they even have a cute Power Keg pictured with a long wick laying next to a couple of match boxes labeled ‘War’ and ‘Chaos’.
To be fair, they do mention an actual potential fundamental for gold in that “the US recovery may be stalling”, but you know the ‘community’… it is going to pitch whatever is inflammatory enough to get the troops motivated and pumping.
I would venture a guess that a sizable chunk of the gold ‘community’ wants war and it wants Chaos because it wants to be right and it wants to get back up on the soap box with a booming I TOLD YOU SO!!. Again, not so much talking about GoldCore as the usual barkers. You know who they are.
But this crap has nothing to do with gold’s fundamental backdrop. I think many readers of biiwii.com know my view on that and on the b/s that so readily gets stirred up on the internet when it comes to gold, which is a simple and enduring monetary value asset.
The bear market has driven home to me just how many pitch men and charlatans a good chunk of the ‘community’ are; stumbling all over each other to make ‘the call’ and not giving a damned about how said call – coming straight out the wrong orifice – can affect regular people, who maybe depend on ‘analysis’ they read in their decision making.
So today’s deprogramming and debriefing is this; if you are bullish on gold you’d better be bullish for reasons other than what is going on in Iraq as gold and oil pump together.