Monday, July 11, 2011
It Can't Be This Easy to Outperform the Herd
How can it be? How can an item within spitting distance of its all time nominal highs generate such negative sentiment? I am speaking of Gold. In other words, the world's global reserve currency, which will crush the U.S. Dollar in the clash of the titans for financial dominance.
I saw this Gold sentiment chart in a piece by Mr. Roy-Byrne over at thedailygold.com and actually laughed out loud:
Now, I wasn't laughing at the people in this survey - I was laughing at my good fortune. I am guessing this low occurred around July 1st, when there was a brief dip in the Gold price of a FEW PERCENT (oh my gosh, how horrible!). I admit I made my purchase of Gold on June 27th (buy the dips in a bull market, right?) and told my subscribers the low for Gold was in at that time, so I missed the short-term bottom by about 1%. As hard as it is to believe, the Gold sentiment (by this single sentiment measure and none are perfect of course) just went to its lowest level in MORE THAN 2 YEARS at a time when Gold was less than 7% from all-time new nominal highs!
The markets never fail to both confuse and amuse. We are setting up for a great rally that I suspect will last into the end of the year for both Gold and Gold stocks. I plan to keep my subscribers on board for the ride, including navigating some of the short-term swings. Why don't you join us?