Precious metals showing strength despite soaring pessimism, notes Jordan Roy-Byrne
We have the majority of sentiment indicators showing more pessimism than in 2008, an explosion in negative news coverage and news that major banks have downgraded their outlooks. Without knowing anything else, you'd expect
gold to be down considerably, yet it's only off about 5% year to date and 10% in the past three and a half months. Most important,
gold hasn't even broken support! With this sentiment I'd have thought
gold would be trading at $1450 or $1500. Even Silver hasn't broken its support. ...
Meanwhile, the
precious metals complex is arguably at its most bearish sentiment since the start of the bull market 12 years ago. Either the bull market is over or this will prove to be a tremendous buying opportunity. At the same time,
gold hasn't even broken support or made a new 52-week low. It shows you the amazing strength of this bull market. Despite all of the bearish sentiment, the panic and bad-mouthing,
gold (and
silver) has maintained its consolidation. This year will go down in history as one of the best buying opportunities for both the metals and the stocks.
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