The thing that strikes me about this gold rally is how intensely negative the opinions about it are. I mean, I don't remember people screaming, "BUBBLE!!! BUBBLE!!! SELL! SELL! SELL!" When google almost doubled TWICE within a matter of weeks. I mean, look at this:
Gold off 24-3/4-year highs, but sentiment bullishSentiment BULLISH?! Not in this article:
"Japanese buyers are key to the move, although I don't think many people understand why they have really bought," said John Reade, precious metals analyst at UBS Investment Bank.
Yes, and pieces of paper with George Washington's face are MUCH more worthwhile. Talk about not understanding! It gets better...
"One day we'll walk in and it will be down $25 -- and it always comes down faster than it goes up," said Jeremy East, global head of precious metals at Commerzbank.
Is that a fact? Actually, it's not- it's a complete lie. See for yourself. Just don't strain your eyes, looking for those enormous, sudden drops:
http://www.kitco.com/LFgif/au3650nyb.gifOf course, the author won't challenge that assertion. Can't imagine why.
And speaking of bullish sentiment:
Gold nearing heavy correctionGee, there's a perfectly non-biased sentiment! My favorite quote:
“The problem is that price spikes tend to end and when they do the price in gold, silver and platinum comes down faster than it’s gone up.”
From a completely different guy from the previous article, by the way. They must share the same rather small brain.
Bottom line- yes, gold can (and probably will) correct in the near future. Maybe even heavily! But for the future, thanks to Bernanke, Greenspan, and these yokels, there's only one direction gold can go- up. That'll be the case, until it becomes "common knowledge that gold always goes up". Then, and only then, will we see REAL gold kooks!