By Bob Moriarty
321Gold
In investing, you want to be buying when everyone is saying, “sell” and you want to be selling when everyone is saying, “buy.” Last December gold shares were as hated as you can ever find. By one measure, there were “zero” bulls.
I wrote a piece titled, “If you believe gold is going to go up …” Most of the shares on that list went up 50% to 300%. Gold is undergoing another much needed correction to wring up the excessive optimism that builds up so quickly among gold bugs who believe gold should go up every single day and any day that it doesn’t go up is a sure sign of manipulation.
Markets go up, markets go down. That’s how markets work. Gold is in a correction and you should be looking around for bargains. If you believe gold is going to go up after the correction, you want to be buying heavily leveraged gold stocks in safe environments. We could well see a test of last December’s lows in the coming months but now is the time to be selectively identifying the pick of the litter.