Tag Archives: gold capitulation

Stocks are pulling back in preparation for one final mind-blowing surge to top off this five-year bull market. Gold, on the other hand, looks like it is setting up for a final bear market capitulation phase where every gold bug finally throws up their hands in disgust and jumps over to the stock market right as it's putting in a final bubble top. For those...that are sitting in cash, this final capitulation is going to represent one of the greatest buying opportunities of this generation.

The historical record shows that those who get washed out during big corrections miss the greatest buying opportunities of a bull market. With that as context, what can we expect from gold moving forward? Let's start with the short term.

We are seeing signs of a bottom...in gold...but... prudence calls for waiting for some signs of stabilization before getting long. I would rather miss the first 10-20% move than lose another 50% should I get long prematurely. [Let me show you some charts that illustrate my caution.] Words: 288; Charts: 6