Time To Tactically Turn Cautious On Gold

When someone who is paid to be a rah-rah cheerleader on the precious metals turns cautious you have to sit up and take notice. Bob Moriarty of 321gold.com did just that last week:

Gold and silver are behaving well but they too, are overdone. You don’t have to be 100% invested all of the time. If you have some profits, take some money off the table. If you don’t have profits, you haven’t been reading me for the last nine months.

We probably are not at exactly a trading top but we are pretty close. Better to sell a day early than a day late.

The last time he warned on gold was on March 7, 2008, just before the metal price fell apart. I pointed out the high risk condition and got a lot of hate mail for it.

This time, Barrick’s de-hedging program and equity issue may have been the signal to tactically turn cautious on the precious metal complex.

Nothing goes straight up. Be warned.

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