I know the online gold bug community may not grant me scotch communion at our local gold vault get together, but this author believes that it is time the shiny star to take a break. And again, many thanks to @grok for a great picture for this article, before I go further.
First and foremost, the speed of the move higher in the last two weeks has been nothing short of incredible.
This acceleration in “normal” times, whatever that is now, would be considered a blow-off top by many but if one read my Sunday night article, it’s obvious that I do not quite think we are there; yet.
Secondly, there is a timing issue that many may choose to ignore at their own risk. Despite heavily announced central bank purchasing, speculators have every reason to take some cash profits and rotate into other issues or just park it in short term cash equivalents.
Lastly, this is not just a month end, it is a quarter end. The window dressing of “My portfolio needs some gold” is often offset by the “I’ve got to show more Mag 7 on the balance sheet to keep my job.”
After this week, after the quarter and month end window dressing is over by next Wednesday, it is this author’s belief the rally continues beyond $4000 per oz until something worse happens.
Thus while this might be a “top” it is not THE TOP.
If you have to buy, this might be your last chance before monetary insanity and QE∞ is announced to bail everything out to satisfy the nonsense emanating from Washington, D.C.
