Monday, August 8, 2011
- Calling The Top In Gold
I heard two people 'call the top' on gold today. But that makes no sense to me.
The only way you can believe that gold won't continue it's march north is if you either believe that there will be no further policy measures from the fed, or that you're short gold already and you're talking up your book.
The first person I heard call the top was Jim Kramer. Kramer's lack of insight is legendary in my business, and we think he's usually good for a laugh. The 'Kramer' effect is well known and a subject of frequent humor (hows that Bears Stearns buy reccomendation working out for you Jim?) That Kramer called the top seems like a buy signal if anyhting to me.
The second guy was some ex J Aron drone that MAria Bartiromo had sidled up next to on the exchange floor this afternoon. He seemed to be pretty clearly tryign to talk up his book.
Meanwhile JPMorgan came out today and said that they believe gold can go as high as $2,500 by year end. That seems ambitious to me, and if it's true, then I mourn in advance for what the world will look like. I'm sticking with my previous forecasts. But I do think I should add that I find it very difficult to believe that this is the top.