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Show me the gold market of the last few months, and I'll show you an asset that has become almost universally despised.
Since April, gold has lost more than $140 per ounce, and is now trading near a major long-term support level.
Some of the world's largest fund managers have given up on gold, having watched asset levels deteriorate by nearly 60%. After two years, even Wall Street analysts are downgrading major gold miners to "Hold" status.
Gold ETFs – on a global basis – have been unable to stem outflows for the past two months. Sentiment is so low that asset managers are establishing record net short positions in gold futures.
And, in what seems like a race to be the most pessimistic, some analysts are even calling for sub-$1,000 gold.
My experience tells me, when the average investor wants a 10-foot pole just to come near an asset, and when so many bears come out in force, we're getting close to a bottom.
Taken individually, all the bad news items on gold suggest it's an investment that's headed lower or, at best, sideways for some time.
But as a whole, the negative macro view on gold provides for a great contrarian signal, suggesting gold may be nearly done falling.
Let's examine in more detail each of the "bad news bears" I've mentioned above, and I think you'll come to the same conclusion I have.
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.
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