“A gold run-up like this perks up the ears of the mainstream…and that often gets our contrarian impulses tingling. MarketWatch took note this week of the interest in gold among big-name hedge fund managers. Good for them. MarketWatch is only 10 months behind us in noting David Einhorn’s interest, and seven months late catching onto John Paulson’s stake in South African miners and the gold ETF,” Addison Wiggin Reports From Wall Street Pit.

“All of this is fueling talk of a “bubble” in gold. To our friend James Turk, this signals that gold has begun only stage two of a three-stage bull market. “Don’t be misled by what you may hear or read in the mainstream media, and even much of the alternative media,” he writes. “After all, how many commentators have correctly identified gold’s bull market, now a decade old?” Or for that matter, how many correctly identified the tech bubble in the ’90s or the housing bubble this decade,” Wiggin Reports,

“Gold has moved from apathy and neglect – stage-one characteristics – to growing attention. But importantly, instead of embracing gold and analyzing it to determine relative value, today’s attention is one of widespread disbelief and skepticism that gold can climb higher. These are exactly the responses one should expect to emanate from stage two.”

“As gold climbs higher, we will eventually enter stage three. The timing of its arrival cannot be predicted, but we will know it has arrived when commentators who have been consistently wrong about gold will be telling everyone willing to listen to buy gold.”

See The Full Story: HERE

Here are 2 ETF’s to play if you believe that gold is in a bubble:

The investment (DZZ) seeks to replicate, net of expenses, twice the inverse of the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is comprised of a single unfunded gold futures contract.

The investment (DGZ) seeks to replicate, net of expenses, the inverse of the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is comprised of a single unfunded gold futures contract.

 

Get 10 Trading Lessons FREE Click Here

GET A FREE TREND ANALYSIS FOR ANY ETF HERE!

Related posts:

1. Commodity Trading Trends: Gold Stuck In A Correlation Rut (GLD, IAU, KGC, ABX, SPY)
2. Inverse Gold ETFs: How To Bet On A Precious Metals Bubble (GLD, DGZ, DZZ, GLL, DUST, TBAR)
3. Price Drop Concludes Gold Is Entering Bubble Phase; Expect $7,000 To $20,000 Gold By 2014 (GLD, SLV, IAU, GDX)
4. Are Gold ETFs Creating a Bubble? (NYSE:GLD, NYSE:IAU)
5. When Will Gold Stocks Reach The Bubble Phase? (GLD, GDX, IAU, GDXJ, DZZ)

ETF BASIC NEWS