Gold Optimists Could be Jumping the Gun
Lately, analysts are growing increasingly giddy about gold’s rise in value to near $1,300/oz. Hey, we said it was going to $1,400 after the extreme sell-off down to $1,055. And recently we warnrned that if it broke above a downward trend line in rallies, it might even go to as high as $1,450, after previously reaching $1,383.
And that looks more likely now.
But they’re excited for all the wrong reasons.
In the next several months it’ll be time to SELL the precious metal again… not the time to overpay for a relatively worthless investment.
The problem is, many owners are hesitant to part with their gold because of the (misdirected) value they place on the asset. Sure, gold can hold particular sentimental value… but that’s it.
Gold bugs will declare several reasons for investing in and holding onto their stash of the yellow metal. One of the leading tenants they swear by declares gold to be a strong hedge against inflation, dollar manipulation, and crises.
Right now, there is absolutely no evidence of an inflationary threat and absolutely nothing to indicate the dollar’s strong value will weaken. And if you think gold will protect you during times of crisis, just look at the last bubble burst in 2008 – the dollar was the safe bet, not gold.
Again, this is all on top of the fact that a commodity (not a currency) with very little value and very little financial security has been flirting with $1,300 – $1,380/oz.!
The evidence against gold goes much further. In our latest infographic below, The Top 7 Cases Against Gold, we reveal the top seven cases against gold and why we’re approaching the perfect time to part ways with the yellow metal… and maybe even make a bet against it.
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