Today, this article, Top metals analysts bullish on bullion, caught our eye.
It looks to us that the crowd are soon becoming fixated with gold again. When that happens, we can be sure another short-term bubble will emerge again?it will be once more history repeating itself (see The story of gold). Again, we would like to repeat our reason for wanting to buy gold: What should be your real reason for buying gold?.
So, are we bullish on gold?
The truth is, we are not bullish on gold?rather, we are bearish on fiat currencies. This is the difference between the crowd and us. Since there is no good reason to be bullish on gold, the crowd who buy it can easily change their minds and dump gold. On the other hand, since we have good reasons to be bearish on fiat currencies, we will remain steadfast and hang on to our gold, perhaps buying even more when the crowd dump it to us.
Tags: fiat currency, Gold
