I wanted to highlight this information because the sentiment indicators tracked by Mark Hulbert tend to be particularly accurate for forecasting contrarian market moves in the precious metals. Per JB:
MarketVane’s Bullish Consensus for gold lost a point to 63% and the HGNSI slumped 14.3 points to 9.2%. This index has not been this low since August 28th 2009, before gold made its major October-November $200+ move.The HGNSI is rarely this low, although I believe it went negative in October 2008, before the massive move higher in the metals that included a big dislocation from the equity markets. Typically readings in the HGNSI below 30 portend a bull move in gold/silver. Is it perfect? Who's John Galt?
What I will say is that, based on reader comments, there is an extreme "wall of worry" in the metals investing community. As I said to a reader the other day: when you become a perma-bull and everyone I know is bugging me for gold stock tips, that's when we will will start unwinding our positions and start looking for the next game. I believe that time is many years away and, until then, we will keep adding to our physical gold and silver positions on every pullback.
Standard Bank Confirms Physical Demand
This too is from the JB bullion report:
In a valuable report today, Standard Bank says “With gold below $1,200, the demand response from the physical market has swung from resistance to strong support, as gold selling and scrap sales have dried up. Our Standard Bank physical gold index has bounced into highly positive territory.”India was also reported to have been a big buyer the last two nights. The Wall Street paper machine has been trying to knock gold/silver lower every day this week. They are going to have problems with their short positions as physical buyers opportunistically buy on all pullbacks. This is a new phenomenon that I have not seen in the previous 9 years of this bull market.