Gold Is Dead
April 30, 2013 in capuchinomics
Gold is dead.
It’s what you would think if we weren’t all brainwashed into believing that Gold was somehow guaranteed to go up because of: Dollar debasement, deflation/inflation, uncertainty/certainty, apocalypse/Mayan calendar, death of the US/the Euro/Japan, hyperinflation/hyperdeflation, Great Depression/Great Recession…
What does this chart tell you? You know what that chart tells me?
It tells me loud and clear that the whole Dollar debasement and the idea that the-Dollar-is-about-to-die thing we’ve all been conditioned to accept is done. Finished. We all need to move on.
Why? Because this Dollar debasement, Dollar death idea is fully priced into gold. And to be frank, it’s been in the price of gold for 2 years now. Just think about it like this, everyone that was ever going to buy into the Dollar debasement idea is already in gold.
Now, there’s just the usual panic at the exits to come. Why?
Remember, big money bought gold HIGH. That includes David Einhorn, John Paulson, Ray Dalio and central banks from India to Russia.
Meanwhile, pound for pound the best and most instinctive hedge fund trader/manager alive, George Soros saw this coming. That’s why he dumped his Gold starting in February.
You’re not going to have another parabolic move on top of this. It’s like building a skyscraper on top of a skyscraper. Not happening.
Bottom Line: Gold is going to go back to $500.