Worlds 1st Gold ATM; a sign of a top in Gold?

May 13, 2010 10:50 AM ET
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Long/Short Equity, Deep Value, Special Situations, Contrarian

Contributor Since 2009

Sol Palha is the head financial analyst at Tactical Investor. He is a self-taught Student of the Markets, having widely read conventional and non-conventional texts on all aspects of technical analysis, Mass Psychology and philosophy
Emotions are the main driving force behind the markets, not technical analysis or fundamentals. Those that focus on one or both of those elements are missing a huge part of the picture. Once the emotion that’s driving the markets is identified one can determine the trend and then fundamentals and technical analyse can be used to refine one’s analysis further.
When combined Mass Psychology and technical analysis are second to none and can accurately help one determine market topping and bottoming action in advance of the event. One should not confuse topping and bottoming action, with trying to predict the actual top or bottom. An endeavour best left to fools with plenty of time on their hands and an inordinate capacity to deal with pain and failure.

Amid fears over the strength of nearly every major currency, Abu Dhabi's top hotel has come up with a new type of ATM for their most risk-averse guests. The Emirates Palace is giving those staying there the chance to withdraw gold from the world first ever gold dispenser. With gold prices at record highs amid fears that the EU's rescue package will drive inflation higher, the ATM monitors the daily price of gold and offers small gold bars that weigh up to 10 grams with customized designs.
Giessler's timing is very good given gold is currently at a record high. Given the price action at the moment your 10 grams could be worth considerably more by the time you check out and could help you pick up the tab at the luxury resort. One night in a three-bedroom suite that could set you back more than $10,000 a night.  Full story=
This is a clear sign that Euphoria levels are reaching an extreme level in the Gold camp. The next move for gold could therefore be down instead of up.  History has shown that whenever something spectacular is done in a market that is extremely overbought, a top is usually close at hand. The Burj towers are a clear example.

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