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Wednesday, May 16, 2012

Don't buy gold until you read this!

Ever since I called for a major top in Gold in a blog dated August 24th, 2011 gold has continued it's steady slide.  

At a time when most were predicting Gold was going to the moon, I warned gold is not the "safe haven" many think it is, and seeing is believing. 

I enjoy the Gold Rush series as much as anyone else, but I also recognize irrational exuberance when I see it, and when you see a sign on every corner which reads, "CA$H 4 GOLD" you know this is not business as usual.

Over the past year we've seen gold money forced into equities, although much of that money found safety in US treasuries.
During the profit taking of the past few weeks we've watched hedge funds dump their gold positions in order to raise much needed capital, and even today - in a run on Greek banks - we see Greeks fleeing to the safety of the Euro. That's right in the fear that the Greek government is about to collapse the Greeks are not hording gold, but Euro's! I call this a successful test run for what is going to happen when our house of cards comes unglued. 

Gold is not the safe haven it was cracked up to be, it's only a speculative metal not much different than copper, aluminum, or zinc. 

Don't buy gold unless you have a firm grasp of fundamentals and the technicals, or you don't mind losing 90% of your money in a speculative metal, because when Gold sells into Primary wave (C), it's going to make the past few months look like a Sunday Picnic. 

 Although the charts pointed to this shakeout, I believe it was exacerbated in a conspiracy perpetrated by certain individuals in the media, the US treasury, and Goldman Sachs, and I intend to expose this in a separate blog.