Thursday, March 23, 2017

Getting Religion on Gold

Lawyer Clarence Darrow was famously a religious skeptic. Someone asked him: "Suppose you die and go to heaven. And it turns out the conventional story is true?" Darrow replied that he would walk up to the divine judges’ bench, bow low and say: "Gentlemen, I was wrong."
Now it’s time for my true confession. I may have been wrong. On March 16, I laid out my case for gold being in a big bull market in my article, "Your Golden Opportunity."
I was bullish, sure. I said gold made a major bottom in January 2016. And the correction since July was just that — a correction to the new bullish trend.
However, I also said we probably hadn’t seen the bottom of the correction … yet.
Gentlemen, I may have been wrong.
Gold may not wait for March to end.
Here’s what I was thinking: March is usually a terrible month for gold. Look at a monthly chart of the metal. March usually sees gold stumble.
Those blue dotted lines show the month of March. Down, down, down. Even after the new bull market started in 2016, March was Debbie Downer.
Longer term, this still holds true. Since it became legal to own gold again in 1975, gold has AVERAGED a loss of 1.04% in March. That’s worse than any other month. Yeesh!
So you can see why I was hesitant to call the correction over ...

1 comment:

  1. You forgot "money printing". Oh wait that's only an argument for buying gold when the Democrats are in power.

    ReplyDelete