A Few Chunks of Goldbug Kryptonite

30 Day Gold, through December 18th

30 Day Gold, through December 18th

Hold your hate mail Goldbugs…I don’t make predictions here on anything, nor do I particularly care which way the price goes today or tomorrow.  The recent sell-off in the yellow metal has brought out a ton of bearish sentiment this week, some of which I’ll post here…

First up, Doug Kass has a gold call in his annual 20 Surprises list for 2010…

The price of gold topples. Gold’s price plummets to $900 an ounce by the beginning of second quarter 2010. Unhedged, publicly held gold companies report large losses, and the gold sector lies at the bottom of all major sector performers. Hedge fund manager John Paulson abandons his plan to bring a new dedicated gold hedge fund to market.

This next one comes from Nouriel Roubini, writing at his RGE Monitor website…

“For the next two years, deflationary pressure is going to be dominant, and it is going to become a time bomb down the line if and when we keep monetizing large deficits. It may be too soon to hedge with gold… Unless we have high inflation, or…other risks like depression, gold looks toppy.”

Finally, this one isn’t quite an overtly negative call on gold itself, although these types of stories, in retrospect, can signal an inflection point during a speculative mania.  Put it this way, if I were majorly invested in gold, I’d rather see a lot less articles like this one…

Gold Is the New Tupperware, and You’re Invited to the PartyWall Street Journal (12/21/2009)
The 1950s were big for Tupperware parties. The 1970s were hot for Mary Kay cosmetics. As this decade hobbles to a close, a new kind of social gathering is invading America’s living rooms: the gold party.

The thing to keep in mind is that a lot of the buyers who throw these gold parties are amateurs themselves cashing in on the gold trading frenzy.  I’m waiting for my wife to tell me that the cougars on Desperate Housewives are buying gold from each other or whatever. 

***

These are just two and a half opinions on gold prices, but they are indicative of a growing and more emboldened chorus that we’re starting to hear more from as gold enters its third down week in a row.

Like any other asset class this popular, the increasingly vocal bearishness in the financial media is something we need to be aware of.

Sources:

Roubini Says Gold, Oil Look Overpriced  (Reuters)

The Gold Bubble and the Gold Bugs (Project Syndicate)

Kass: 20 Surprises for 2010 (RealMoney Silver – sub req)

Gold is the New Tupperware  (WSJ)

Tags: , , , , ,

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Eric Arnoux commented on Oct 09

    … [Trackback]

    […] Here you can find 58248 additional Information on that Topic: thereformedbroker.com/2009/12/21/a-few-chunks-of-goldbug-kryptonite/ […]

  2. Magazines for Sale online commented on Oct 10

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2009/12/21/a-few-chunks-of-goldbug-kryptonite/ […]

  3. td canada easyweb login commented on Oct 14

    … [Trackback]

    […] Find More here to that Topic: thereformedbroker.com/2009/12/21/a-few-chunks-of-goldbug-kryptonite/ […]

  4. 안전공원 commented on Oct 16

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2009/12/21/a-few-chunks-of-goldbug-kryptonite/ […]

  5. cum sa faci commented on Oct 30

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2009/12/21/a-few-chunks-of-goldbug-kryptonite/ […]

  6. malaysia best casino commented on Nov 20

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2009/12/21/a-few-chunks-of-goldbug-kryptonite/ […]

  7. 토토 commented on Dec 25

    … [Trackback]

    […] Here you will find 34732 additional Info on that Topic: thereformedbroker.com/2009/12/21/a-few-chunks-of-goldbug-kryptonite/ […]

  8. cheap wigs commented on Jan 14

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2009/12/21/a-few-chunks-of-goldbug-kryptonite/ […]

  9. tangerine online commented on Jan 20

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2009/12/21/a-few-chunks-of-goldbug-kryptonite/ […]

  10. bmo login canada commented on Jan 26

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2009/12/21/a-few-chunks-of-goldbug-kryptonite/ […]