Gold Soars and CNBC Doesn’t Believe It

I turned on Fast Money tonight and the first thing out of their mouths was of course the monster rally in gold.  But did they think this could be a real rally?  Of course not!  Immediately all 3 traders dismissed it as a fake rally, and that gold was going back to $1200.  Now remember this is the same network that was pumping out negativity on gold last December, including attacking Frank Holmes for recommending gold, when gold was making one of its major bottoms in this bear market.  This is the same network that in November of last year started pumping Bitcoin as a good buy when it was making a major top and was going to be cut in half in the next few months.  This is also the same network that for a month straight in December 2012 had a fiscal cliff countdown that was supposed to spell doom for the stock market, but instead stocks went on to a historic run in 2013.
Now if you tune out the noise and pay attention to the price action, you’d know that gold mining stocks have been making big moves on volume for the past 2 weeks, ever since the gold breakdown failed to follow through.  I’ve been covering that daily on this blog.  Failed moves often produced fast moves in the other direction especially at the end of bear markets.  If this is the end of the gold bear market, which it looks like it is, then you want to be on board and ignore the naysayers.  And there are plenty of naysayers after this devastating gold bear.
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2 thoughts on “Gold Soars and CNBC Doesn’t Believe It

  1. Thanks for your time and sharing very useful insights. I am quiet new to Gold investing, I like to know why you think gold cannot go below 1000$ or 850$, I noticed all financials instruments in bear markets go down anywhere from 55~70 percent. Latest news about Iron ore also into bear market, Aluminum, Nickel and Led,etc., and all mining stocks crazy down but not sure when they will recover but I like to understand your point of view whether metals have any special in investing world.

    I still don’t think we have seen panic sell off in gold or any metals world.

    Thank you

  2. Hi Kumar,

    I don’t think gold has to go down that far to complete this bear market. Bear markets usually last 1-3 years, in this case we are almost done with the 3rd year for this gold bear market (started in September 2011). Furthermore most of Wall Street expects gold to fall further, and when they form a herd opinion they are usually wrong. They were dead wrong in 2011 when they expected gold to keep going higher in 2012 for instance.

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