Gold- Short term DOWN. Long term ???, page-5

  1. 30 Posts.

    I agree with nickoos remarks about concensus opinion on gold "being" bullish. After all when the media start to churn through heaps of articles on gold and try to tell you how well its chugging along, this in anyones mind could be called concensus thinking. At the very least you would have to agree that the media is drawing the publics attenton towards gold. And as history tells us- this line of concess thinking is usually, if not always, WRONG.

    The inverse correlation on gold and equity markets does exist. Smart Money has to flow somewhere when all hope is gone. And we are not talking about where the "mum and dad" investors throw their money, because more often the not they are also the ones that ride rallys late and take the longest to return to the markets if they get smashed.

    Overall opinion may NOW be bearish on gold but its only because the "big guys" have started their slaughter of gold again and not because small time traders have decided to exit positions.

    I think its very clear where the US equity markets will be in the medium term. After all, history has a lot to do with the way equity markets work today. And the more bounces i see in the US the more i believe in the inevitable. In my opinion, not a lot changes, an overpriced dog- no matter what it wears- is still an overpriced dog. The only aspect of global markets that differs as the decades roll along, is the amount of investors it sucks into believing "times are different".

    Gold will move when every last small time investor, daytrader etc etc think that all hope on gold is lost.

    That day WILL come when i no longer see any gold posts on hotcopper.
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