One thing about unsustained prices in PM's is that the HUI/XAU under perform the gold price considerably. Noting that the HUI was sitting at 450 when gold last reached these dizzy heights I suggest something is seriouly wrong when it trades 30% below that level. The writings on the wall with everyone calling gold 1200 etc. Just look at the ETF funds! Almost doubled in gold holding since Oct 08. Just look at the COT shorts, 200K contracts on the short side! What do you get? Pain for the buy and hold brigade for PM's and gold stocks! The shorts are in a position to engineer a sell off greater than Jul 08 thanks to the ETF's. Gold/Silver historically tops around March.
2005 top March
2006 top May
2007 top February
2008 top March
2009 top February/March (Maybe)
NCM tops
March 05
Feb 06
Jan 07
March 08
Feb 09 (Maybe)
Risk/Reward! Its a sell!
short sales info fyi, page-14
-
- There are more pages in this discussion • 4 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)