Have you noticed more ads and spam hyping gold these past few weeks? I sure have. It seems every day there is another new gold “expert” out there. Or another email screaming:
BUY GOLD NOW ‘CAUSE IT’S GONNA GO UP-UP-UP!!!
At the start of the week there were even articles saying three of the major banks projected gold would rise between now and December. Wow – so much smack-talk from the folks that brought you the Crash of 2008.
Does this mean you should sell the children and load up on gold stocks and ETFs? Should you be squirreling gold coins in your mattress? Stashing bullion under the floor boards?
Here at The Gold Enthusiast we say STOP! Keep calm and let logic prevail, as a variant of the popular T-shirt might say.
Looking at the chart of GLD (our favorite proxy for the price of gold), we can see quite clearly that gold is doing nothing more than going sideways. In trading-land this is called consolidation.
In real life it’s called BORING. As in snore, snore, snore. Take a look at the 3 month chart of GLD. Usually we like to look at longer term charts but a 3 month chart can be easier to read for the short term. (The Gold Enthusiast himself enjoys 6 month charts. With a fine cup of exquisite coffee of course.)
You can easily see why we think action in the gold market the last few days has been BORING. (Even without the pretty label.)