Wednesday, February 26, 2014

Gold: Its time to be bullish

a) The fact that gold futures moved to a very modest backwardation indicates how tight deliverable supplies of gold are. 

b) Attendance at the "gold bug" conferences that occur in January and February are down dramatically. 

c) Gold prices have gone down, and the market has beaten prices up about as much as they can. Bad news came out several times; you've had gold being downgraded by multiple brokerage firms, and it didn't break.

Throw all those things into the pot, stir them around a little bit, and it tells me it's time to be bullish.