Wednesday, September 26, 2012

BofA Makes The Case For $3,000 Gold

Now that the big institutional investment firms are declaring a secular bull market in gold (better to be 11 years late than never), where were they in late 2008 when gold plunged below $700, post-Lehman flush?

Normally, if the consensus leans one way, I would tend to lean to the other, as conventional wisdom in markets is almost always wrong.  The article's tone is bullish for gold, so as a contrarian, one would consider exiting.  However, the first sentence is wrong in one key detail with this declaration:

"Everyone loves gold these days."

While more people may be AWARE of the inflation-hedging capabilities of gold, very few people "love" gold, and even fewer people actually OWN it.

See disclaimers in the side bar.  Perform your own due diligence.

No comments:

Post a Comment