Gold - Scared to Sell
How soon we forget.As I check out the gold charts, I am reminded that just as recently as October 22, the gold price dipped to $1320 an ounce.A few days ago it hit $1420 and the speed at which it rose to these new highs had everyone convinced gold was unstoppable. Silver too raced higher even faster, while platinum and palladium followed suit.
Now as all the metals have pulled back, here comes the same old rhetoric, "Gold has lost its luster."I'm having a hard time trying to figure how gold at $1365 an ounce somehow signifies lost luster.Any time something like this happens, my phones start ringing and people I know ask what's going on.
My response is the same as always.Nothing goes straight up and any time we undergo rapid price increases in anything, people take profit.Still, it seems, every time gold prices hit new record highs (irrespective of inflation and debasement of the dollar) there are always some who think that's it for gold.
Whatever transpires in people's minds, it is hard to stop many from selling when profit is at stake.Today stocks are selling off, metals are selling off, even bonds are selling off as indicated by the current 2.79% yield on a 10-year.Why wouldn't a little profit-taking occur?
Then, I got a call from a business associate I speak to on a monthly basis and as the conversation comes around to the gold market, he tells me gold scares him.I asked him to explain and he says, "I'm scared to sell.As soon as I do I'm sure it will turn around and head to even higher highs."So he's not selling.In fact nothing has changed for him, he keeps buying a little more here and there just like a billion Chinese people are doing.
Here's the Lear Capital position on gold.It is just as we have stated in past national radio commercials.Selling gold now wold be like selling your life preserver on the Titanic for cash.
For real time prices and an opportunity to buy at today's best online prices, visit LearCapital.com.