Time to dump gold?
Posted on: Nov 5th, 2009 | By Ian Mathias | Filed under Featured, Gold Market
Gold gained yet another powerful ally yesterday — hedge fund icon Paul Tudor Jones. The man who famously called Black Monday in 1987 and the Nikkei crash a few years later now thinks “gold appears to be cheap.” In a note to his investors, Tudor said, “I have never been a gold bug. It is just an asset that, like everything else in life, has its time and place. And now is that time… gold’s value should increase as its scarcity relative to printed currencies increases.”
So gold is now publicly loved by armchair investors, famous hedge fund managers and central banks… even as we write, Erin Burnett is “squawking” about it on CNBC. Are your contrarian senses tingling yet?
“So many hedge fund managers and pundits are singing the same tune: long gold and short U.S. Treasuries,” our friend Dan Denning wrote in today’s Daily Reckoning. “The bond bubble could go on much longer than anyone expects. And when so many people agree on something, none of them are usually right. As a contrarian, you’d be worried about becoming a victim right about now.”
Finish reading this article on DailyReckoning.com.
My contrarian senses are beginning to tingle, but I see that as a be alert kind of tingling. I believe that Gold remains in a secular bull market and has many months to play out before the common folk are going hog wild over gold, which is what I see as the end game to this and all other secular bulls. Look at any secular bull in the past and it ends one way and one way only., with a massive speculative bubble, irrationally high prices for the asset, and the popular belief being that prices are high because they belong there. “THis time is different”. is a common tome to end secular bulls. Right now, I know no one who owns gold or silver outside of the financial community. When this bull ends, I believe I will know several people who not only own bullion, but deal in it. Enough said. I see as many folks on your side of the fence as mine. Too even a ratio in my opinion to make my contrarian senses buzz.
I enjoy your blog.
Fubsy