“The Hulbert Gold Newsletter Sentiment Index (HGNSI), which represents the average percentage portfolio exposure to the gold market among a subset of gold timing newsletters, earlier in December was 65.4% on 12/11/03, it stood at 34.6% as gold closed at a new high on Friday at $410.10, up $4.70 an ounce. What can these meatheads be thinking about with gold at an eight-year high? Think of the losses their readers will absorb. As we said last week, you buy gold and silver related assets for the duration of the bull market. You only sell when something you bought is overpriced or a stock has turned into a dog, and even then, you simultaneously take the sales proceeds into another gold or silver stock so you do not lose your position. This is a catastrophe for gold investors. Wil l the sellers ever get back in? Will the letter writers recommend re-buying? And, if so, at what price $410, or $430, or $450. These newsletter writers have to have their heads screwed on backwards. What can they be thinking about – in a bull market? The flipside is that their incorrect analysis is extremely bullish for gold and silver. Timing and trading in gold and silver markets does not work. How do we know that? We have been involved in nothing but gold and silver stocks for 44 years.”
