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7/26/10 Gold Bugs are Defensive

Observations: Of all of those commenting on SA over the last week, Gold Bugs interest me the most. They seem to get quite defensive when anyone brings up the idea that gold might be in a bubble. Some have very rational calculations to support their belief that gold is going higher. Some just keep repeating a mantra. It is pretty clear that they all have made good money and want to ride the ten year trend for many more years. They appear to be heavily invested and their reactions suggest that they are quite concerned that somebody hollering "fire" could cause a mass exodus.

My gut: This observation affirms my prior belief that the risk / reward ratio is just too high to be getting into gold now.

For Consideration: The Silver Bugs seem to have more to support their case if what they say is true. One even claimed that some study showed that there would be no more silver in the ground to mine in 5-10 years. Seems that back in the 70's we had studies that said that we would be out of oil by 2010.

Disclosure: "No Positions"