when the masses are just hitting their stride in selling the gold and silver they own? Sears and Kmart are now marketing a service that allows customers to sell their gold and silver jewelry to help pay for purchases: Sears, Kmart and Pro Gold To Help Separate People From Their Gold.
Remember, the classic signal that a bull market has reached its bubble-ified zenith is when the masses can't get enough and chase prices into the stratosphere. Think: Dutch tulip bulbs, internet/tech stocks, Florida swam real estate...The gold market is not only NOT exhibiting ANY of the classic topping signs, the above program being rolled out by Sears/Kmart, the ultimate middle class heaven, is indicative more of a bull market still in its early stages. In fact, while watching the Rockies/Cubs game tonight, cash for gold ads ran several times. Classic early bull market characteristic: the smart money accumulates what the masses happily sell, waiting for several years and several multiples higher to re-sell it back to the same dopes who sold it years earlier at much lower prices. If anything can be said right now, it's that the bull market in mindless American consumption is still intact, albeit running on fumes.
Just as telling is the fact that big, supposedly smart, hedge fund money has barely scratched the surface in the metals/mining stock sector. There's no telling how high gold, silver and mining stocks will be by the time the hoi polloi want in.
Monday, May 17, 2010
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