by Chris Powell, GATA:
Dear Friend of GATA and Gold:
Sentiment couldn’t be worse in the monetary metals sector right now. The good news and the bad news are that sentiment doesn’t matter.
Of course Mark Hulbert at MarketWatch thinks it matters, as he makes a business out of gauging the sentiment of financial letter writers, and he even calculates that sentiment for gold is good among those writers and constitutes a contrarian indicator, signifying that the metals will continue to fall, though of course those writers themselves are trying to be contrarian to market sentiment:
And an anonymous blogger who says he attended GATA’s presentation at the New Orleans Investment conference last month writes that GATA Chairman Bill Murphy and your secretary/treasurer “both came across to me as defeated” and “have mentally lost the righteous battle they have been fighting for 15-plus years,” which he construes as another “bottom indicator” for gold:
The guy is entitled to his impressions, and Murphy and your secretary/treasurer did argue in New Orleans that central banks are rigging markets, including the monetary metals markets, more ferociously and obviously than ever. After all, just a few days earlier an Austrian central banker had said as much himself —
— and Sprott Asset Management’s John Embry expressed the same thought tonight:
But “defeated”? Murphy and your secretary/treasurer would not have bothered going to New Orleans if we thought that. We still have enough to eat and drink at home. Nor would your secretary/treasurer, considering GATA defeated, be tapping this out on the keyboard so late at night when he could be watching old episodes of “Hill Street Blues” on TV.
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