In a piece today, “Golden Correction”, Mark Hulbert writes that sentiment among the gold newsletters that he follows is very bearish. The recommended exposure as of the end of yesterday was 11.5% – down 54% from where it stood last Tuesday.
As I’ve been arguing in my talks, the case for gold is both fundamental and sentiment based. The fundamentals are still in place.
Additionally, many people were burned by gold and other commodities in the late 1970s, early 1980s, and don’t want anything to do with them. There is a lot of money on the side and a lot of people who are in are ready to sell and call the end of the bull move at the slightest tip of a hat.
I don’t think it will be long until gold reclaims $1000.