Speculators Hate Gold — It’s Time to Buy
Before 2013, gold had been up every year for twelve years straight.
That kind of asset performance is unprecedented.
However, the vast majority of people have yet to participate in the greatest bull market in gold in a generation.
If you’re like most people, you just watched it go up.
If you’ve ever felt the pain of missing a market move, you know that sitting on the sidelines during a huge move can hurt more than losing money.
At some point you heard that all this QE (money printing) by the Federal Reserve was going to spark fears of inflation.
You also must have known that gold is a good investment in an inflationary environment.
And I know you heard somewhere that gold was performing well.
But you just couldn’t pull the trigger.
Well, that’s OK.
It’s actually it’s a good sign.
Gold Will Go a Lot Higher
It’s good because bull markets don’t end until they pull in the masses, the “Johnny Come Lately’s”, and the newbies.
Anecdotal evidence says that hasn’t happened yet.
Ask anyone you know how much gold they own. I’d bet you dollars to donuts that 9 out of 10 people do not have any exposure to gold.
That’s just not how bull markets end.
Remember the stock market of the late 1990’s or the real estate market of the mid 2000’s?
Everybody was talking about all the money they were making in internet stocks or how much they made by flipping houses.
People with good jobs quit their jobs to chase the dream of being a stay-at-home stock trader, or a house flipper.
There were legions of 20 or 30-something “genius millionaires” who just hit the jackpot with the hottest internet play, or the lucrative house flip.
Everyone had an online business idea they would take public, and there were offers for real estate that came in above the asking prices.
“We’re running out of shares of stock, and running out of real estate,” was the general feeling.
Those market moves were at the forefront of our social consciousness.
And near market tops, bull markets are so alluring, so unavoidable, that they suck in even the most skeptical investors, only to eventually slam them down and send them crying back to mama.
And even though gold went up for 12 straight years, this type of social movement has not happened – yet.
After all, even though gold went up 558% the last dozen years, when’s the last time you heard someone talking about making a killing in the gold market?
And here’s the beauty of it all…
Opportunity is Knocking — Again
Gold is extremely volatile, so the dips are deep and provide you with tremendous buying opportunities.
In the mid 1970’s gold was in a very established bull market. It had risen from $35/oz all the way up to $200/oz in about three years.
Then, it went through a deep pullback that cut the price in half to $100/oz. People felt like they missed the move and gave up on gold.
Or they forgot about it. Gold went down and then sideways for about two years.
This happened before it continued its final ascent to $850/oz.
And of course at the end, when the price was over $800/oz, everyone on TV was pitching gold and everyone had to have it.
Right now gold is down by -31% from its high of $1,911/oz two years ago, all the way to the $1,300 level. That drop has scared all the speculators out of the market.
In fact the Commitment of Traders (COT) report from the CME displays the fact the small speculators are the least active they’ve been in 10 years. Small speculators are the dumb money in the futures market, and it pays to fade them.
The last time the “COT” report showed such low levels of speculation was 2001 when gold began its 12 year bull market.
You need more evidence?
The Gold Miners Bullish Percent Index hit zero recently. That means that nobody is bullish on gold miners. The last time this index hit zero was after the financial crisis in 2008, where gold went from $681/oz to the all-time high of $1,911/oz in three years.
I know I promised you a couple of gold recommendations this week, but I thought it more important to establish the following:
1) Gold is Still in a Bull Market
2) No One Likes Gold Right Now (Contrarian Indicator Flashing BUY)
3) You Need to Pull the Trigger This Time
Pull the Trigger This Time
Sometimes life offers second chances. And this is one of them. Don’t hesitate this time and buy some gold bullion now.
If you are interested in opening a Gold IRA, you can receive more information about the process by requesting the free gold investment kit below.