(This is an excerpt from an article I originally published on Seeking Alpha on April 21, 2013. Click here to read the entire piece.)
On April 14th, I wrote my reasons for believing that a bottom for gold would prove elusive. At the time, I was thinking gold (GLD) could experience a new extended phase of weakness. I definitely did not anticipate a collapse in prices on the very next trading day (April 15th).
Source: FreeStockCharts.com
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Adding to the case for a bottom (or “close enough” to one) is the surge in my stylized “Gold Enthusiasm Index.” {snip}
Source: Google Trends
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Perhaps one interesting and confirming twist is the Google Trend view on silver (SLV) search terms. It turns out that “buy silver” and “sell silver” follow similar patterns to gold. {snip}
Source: Google Trends
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Source: Google Trends
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Source: FreeStockCharts.com
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In the meantime, I will continue to be amazed by the amount of chatter suggesting that gold’s collapse is a harbinger of deflation. {snip} Perhaps inflation will become a palpable threat once after enough people finally conclude the global economy will never see real inflation again…
Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha on April 21, 2013. Click here to read the entire piece.)
Full disclosure: long GLD, GG, SLV, PAAS