Sentiment

This comes from Reuters: The fading allure of bullion and gold stocks is tied to rising prospects for the global economy, said Howard Atkinson, the president of BetaPro Management Inc, which puts out a quarterly survey on adviser sentiment. The latest results showed a big drop in expectations for gold following two years of consistently … Continue reading

Back to gold bullion, BCA Research argues that it is hard to make the case that gold is currently “a crowded trade”. Many institutional and retail investors agree with the gold bull case but….

There are many ways to measure market sentiment. We use surveys, put-call ratios, fund flows data and for commodities especially, the commitment of traders reports (COT). Lately, we’ve noted the improving sentiment picture for Gold. As a market weakens sentiment will naturally become less bullish. In this case, sentiment has weakened considerably yet Gold is … Continue reading

This chart comes from Babak at TradersNarrative: The premium in GTU has dipped into the red for the first time since October 2010 and prior to that, late 2008. This is positive as it shows optimism is now quite low, if there is any.

An upward sloping consolidation in Gold that began in October has, despite a lack of any real losses, been enough to improve various sentiment indicators. Mark Hulbert of MarketWatch gives an update on his Gold sentiment indicator: Consider the average recommended gold market exposure among a subset of short-term gold market timers tracked by the … Continue reading

This nugget comes from Peter Spina and GoldForecaster.com UBS, in its annual poll of central bank and sovereign wealth funds found nearly a quarter of central banks believed gold would become the most important reserve asset in the next 25 years. At its annual seminar for sovereign institutions, UBS surveyed more than 80 central bank … Continue reading

From Gold-Seek.com: These days it is popular and conventional to be a contrarian. It seems that almost everyone tries to figure out what everyone else is thinking/doing so that they can then do the opposite. Right now, for example, it seems that almost everyone thinks that almost everyone else is bullish on gold, and, therefore, … Continue reading

The Hulbert Gold Newsletter Sentiment Index (HGNSI) has gone more bearish than it was last week when Mark Hulbert noted it as being very bullish (on a contrarian basis) on a decline to 23.5%. According to information forwarded by subscriber Larry (not a rookie is all I’ll say) the HGNSI is now registering 9.2%! Do … Continue reading

Focus on the real sentiment indicators…

We contrarians cringe when sentiment gets too frothy, gold is pumped on CNBC and a respectable titan of the conventional investment world speaks of gold as an “asset class”. We cringe, but also realize that at some point in the process, the public is gonna go all-in. At least that’s the script that is usually … Continue reading