"That's a remarkable divergence for two data series that normally rise and fall more or less in tandem. And it bodes well for the gold market over the next several weeks."
Wednesday, October 31, 2007
Gold hitting a 27-year high doesn't seem to be peaking the interest of the gold bugs. From Mark Hulbert; "the latest readings of the Hulbert Gold Newsletter Sentiment Index (HGNSI), which reflects the average recommended gold market exposure among a subset of short-term gold timing newsletters followed by the Hulbert Financial Digest. As of Tuesday night, the HGNSI stood at 51.8%" the all-time high being 90%. "This past February, when gold bullion was trading between $650 and $660, the HGNSI stood at 75%. So, over an eight-month period in which bullion has risen nearly 20%, the HGNSI has decreased by some 23 percentage points."