Thursday, May 28, 2009
Uber-blogger Joe Weisenthal over at Clusterstock points out the relatively poor performance of gold in recent weeks, offering one more contrary indicator that we're still quite early in the precious metals bull market, now in its tenth year.
Hey Look! Gold's Still Going NowhereThere's the typical half-hearted caveat at the end, but the title pretty much tells you everything you need to know. Gold continues to get little respect from a lot of people and, like the career of the late Rodney Dangerfield, that's a good thing.
You would think with all these rising bond yields, talk of a government ratings downgrade and the Fed printing money as fast as possible that gold would really start to break out. But basically it's been a snoozer.
Maybe it's because more people are thinking of gold as something you sell to raise cash in hard times, rather than something you buy with cash to prepare for harder times. Certainly all the Cash4Gold ads on TV suggest there's a lot of demand for green cash. And those other ads, where the guy keeps saying "Real Government Gold" over and over again, complete with images of nuclear terrorism, mainly makes the seller look desperate.
Yesterday, on one of those ground-moving-underneath-your-feet kind of days, the shiny metal didn't do anything.