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Investors are sick of gold

Fund managers and analysts present their case for the precious metal

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‘People are gratuitously ganging up against gold,’ says John Hathaway, manager of the Tocqueville Gold Fund.

 

Poor gold bugs. Everywhere they turn, another can of Raid.

Gold is “doomed,” says one gloomy headline. Gold demand is the weakest in six years. And perhaps the most insulting: Gold is just a “pet rock.”

Ouch!
For contrarians, about all we need now is the classic negative magazine cover to confirm it’s time to buy gold.

But really, there’s no need to wait for that. Sentiment is already gloomy enough. It’s time to buy gold — at the very least for the bear market rally that will soon take the metal 10% to 30% higher, say several gold experts.

The bullish percent index, an indicator that measures the number of stocks in a group that are in a bullish trend, was recently at zero for gold miners.

 

“People are gratuitously ganging up against gold,” says John Hathaway, manager of the Tocqueville Gold Fund TGLDX, +1.39% To him, the current price smackdown is “symptomatic” of a tradable bottom. “You see this supreme confidence that you can’t lose by being on a certain side of a trade.” That would be betting against gold.

“Capitulation in the gold miners is telling us the selling should be over soon,” says Lawrence McDonald, head of U.S. macro strategy at Societe Generale. “We are witnessing seller exhaustion, and we don’t believe the recent breadth of the selling is sustainable.” He’s betting on another bear market rally. And soon.

Credit Suisse gold analyst Anita Soni says gold is poised for a rally in the third and fourth quarters because the bearishness is overdone. She puts the trading range at $1,100 to $1,300 per ounce over the next several quarters.

Besides the tradable bounce, you might also want to take advantage of low gold prices to put some in your portfolio as a form of disaster insurance. More on that logic in a moment.

Thanks to Market Watch for this great article please click on the link below to read the complete article.

http://www.marketwatch.com/story/investors-are-sick-of-gold-and-thats-why-its-time-to-buy-now-2015-07-29

 

Thanks,

The secret of success

 

 

 

 

 

David Ingham

 

PS: Are you looking to start your own Gold Business then click here:

 

 

About David Ingham (2951 Articles)
I am an online enthusiast, Project Manager and family man helping people create Financial Freedom and earn a Full Time Internet Income. Hence my Blog Work From Home Career, I live in the UK and I love life, rugby, running, snowboarding and Triathlon’s. Are you fed up been broke and looking to learn new skills to become financially free? I have teamed up with Successful Mentors that are ready to help you succeed.

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