Jon C. Ogg: “The Gold Contrarian Bet, As Gold Bugs and Paulson Get Slaughtered” – 247 Wall Street

Posted on :Nov 25, 2013

By Jon C. Ogg

247 Wall Street

November 23, 2013

What happens when everyone hates an investment or when everyone likes an  investment? A contrarian investor would say it is time to go the other way. Gold has gone from shinola to you know  what in 2013. It seems like everyone hates gold or doesn’t want to hear about it  anymore. A contrarian might start thinking differently.So, what is happening so badly in gold? The latest trends from the World Gold Council seem to not offer  any great outlook. News came out late this last week that hedge fund manager and billionaire John Paulson has told customers that he would not  be buying more gold.

Paulson got rich betting heavily against mortgages and the housing market,  when many people just couldn’t get enough of the housing market. He took a very  contrarian angle, and this is a bit ironic that such an iconic contrarian might  end up being a contrarian indicator at the same time.

Take the case of the Market Vectors Gold Miners ETF (NYSE: GDX). The chart appears to be at a five-year low after peaking in 2011.  This ETF is on the miners rather than gold itself, but it signals peak selling  in the entire group of those who go out and mine that gold for the world. This  ETF is down by two-thirds from its peak. It is hard to believe, but the miners  are now close to challenging their panic-selling troughs from late in 2008 and  early in 2009.

Then the SPDR  Gold Shares (NYSE: GLD) is not at 5-year lows. In fact, it is still up about 50% from  its lows even if it has lost one-third of its value from the 2011 peak. This  ETF, or trust, is still close to 10.23 million shares in Paulson Management’s portfolio.  The value of this entire trust was $34.3 billion based upon holding 856.71  tonnes of gold.

Would your investment capital be best-served  elsewhere? What if… instead of worrying about the short-term  viability of your current investments… YOUR MONEY was on the front lines of a  potentially profitable innovation with long-term staying power? As we speak,  Wall Street insiders are eyeing-up shares of an American technology that brought  early investors nearly 250% gains last year, and has been described by  Business Insider as, “the next trillion dollar industry.” This  incredible growth story is just getting started…. so  click here and discover the investing opportunity you have to see to believe!

The reality is that most people who are telling you to still buy gold are  doing it because of the fundamental reasons or based upon charts. Central banks  are printing endless money. Interest rates are super low. Currencies have lower  intrinsic value. Strong chart support is within 5% of the current price. And on  and on.

We are not telling you to buy gold, but a true contrarian would be keeping  his or her eyes open on the hunt.

Gold Goliath is not your typical gold dealer.

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