Courtesy of Mish.
Over the past week I received numerous emails regarding my June 13 post Mish Buys a Basket of Miners.
People want to know if I am still in the trade. Others taunted they will be buying when I selling. Well good luck with that idea, because this is an investment not a trade.
One reader proposed “My prediction is when the Fed finally stops printing, gold will drop to $750 and when they start raising rates gold will drop to $500. What do you say about that?“
I answered “Your prediction seems as silly as those who knew gold would be at 2400 or even 3000 by now. No one can accurately predict such things.”
I bought with the intention of holding for a lengthy period, stating “I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.”
What’s changed? The answer is “nothing”. So am I selling? Of course not, and it seems silly to even ask.
Anti-gold sentiment is amazing, but sentiment alone is not a good timing factor. It can always get worse.
A Plague of Gold Bears and The ‘Tapering’ Myth
Acting Man touched on the sentiment theme in A Plague of Gold Bears and The ‘Tapering’ Myth.
Readers may recall that in 2010 and 2011, after largely ignoring the fact that gold had been going up for more than a decade, virtually all the major mainstream banks and brokers suddenly turned bullish on gold. It was a huge warning sign as we now know with the benefit of hindsight (and as a few people suspected at the time). At the time target prices for gold were all of a sudden raised by all these worthies. Not even one of them sounded an alarm.
These days, not a day passes when they are not ganging up on gold, practically falling over each other with ever more bearish forecasts. Here is the harvest from just the past two days: