Despite the recent volatility, gold continues its steady ascent, unaffected by the broader market noise.
As seasonals have shifted and new leadership has come and gone this year, gold remains resilient, moving through market regimes with ease.
Whether stocks rally or risk-off sentiment prevails, gold thrives. The yellow metal has been red-hot all year.
In these times, the saying goes, "there is no fever like gold fever."
But, is there any evidence of this kind of euphoria among investors yet?
While the COT report suggests sentiment may be overstretched, let’s talk about what we’re seeing on the ground.
There’s little buzz about gold in the financial media. No bold predictions of $10K gold on magazine covers, no headlines touting it as the ultimate safe haven in an impending crisis—signals that often show up at market tops. We’re just not seeing it.
For context, in 2011, fears of currency depreciation were rampant. The covers of TIME magazine and Smart Money allow us to remember this moment. They came right at the top.
In 2024, gold has consistently hit new highs, but major media outlets aren't talking about it—and that's exactly how I like it.
I recently visited a gold store to make a purchase, and while I was there, I couldn’t resist asking the regulars a few questions. How many buyers are there? How many sellers? What’s the foot traffic like? Are people excited? Any new faces?
Interestingly, the stores have high premiums for sellers due to an oversupply of gold. This is far from the mania you'd expect, where stores are scrambling to buy gold because they can't keep enough in stock. Right now, they have too much gold.
I don’t think this is just a gold trend. With the dollar likely to continue weakening, I expect gold, silver, copper, and even oil to enter new uptrends in the coming months.
And for now, this isn't the precious metals market of the early 1980s or 2011, when media hype was at its peak. Back then, people were losing faith in the dollar, and fears of hyperinflation were widespread.
Today, there’s no major media coverage of precious metals, barely any buzz on social media, no euphoria at the gold and silver stores, and no outrageous price targets from the media... yet.
I know it sounds crazy, but this kind of sentiment is something we’re used to seeing at the early stages of a trend… not the later stages of one.
While anyone can look at the price chart of gold and understand it’s bullish… What I’m telling you today, is that the sentiment around gold is overwhelmingly bullish as well. I love this setup.
