If you have been following our blog, then you will have no doubt noticed that we have not been big fans of investing in gold and gold related securities.
On August 31st, we issued our first warning salvo:
LINK: Watch Out Below – Gold Edition
GOLD UP UNTIL AUGUST 31st, 2016
We followed up our initial commentary a couple of months later:
Watch Out Below – Gold Edition #2
GOLD UP UNTIL OCTOBER 4th, 2016
Our thesis remains in tact.
Here is a chart of the price of gold. Gold if off over 10% from its highs, and from a technical perspective it stands on a precipice. The 50-day moving average is about to cross the 200-day moving average. This is a damning, bearish event for something that trades purely on sentiment: