That’s right, you read it right here. I’m going short gold today because the signs have alerted me that prices are at the top.
The main signal came in an ad I saw it Sunday’s New York Times. It seems that people behind the IAU ETF, the iShares Gold Trust, are going after the masses. Black Rock Asset Management, the sponsor of the trust, put an insert into the paper of record detailing the benefits of owning “the only gold ETF from iShares.” Sandwiched between the Best Buy circular with deals on LCD TVs and the CVS flyer hocking buy-one, get-one-free vitamins, Black Rock is selling gold.
This can only mean one thing: Gold is getting close to a top.
I know the gold bugs out there will think I’m crazy, especially in light of the news that China seems to be backing up the truck to build its reserves, but something has to give, and I think we are going to see a correction and price adjustment sooner rather than later. I don’t think we’ll see gold prices back to below $900 at any time in the near future but I do think it will drop to $1000 in the next few weeks and months.
As the herd comes into this market, through ETFs and other products, it can only mean one thing: that the price is going to correct itself. The market is efficient, and when the herd takes over, well, the price will fall.
The gold bubble is about to burst. Take profits and sit back and listen for the sound of the bubble popping.
Disclosure: Not applicable