Monday, September 14, 2009

Another Gold Correction Imminent?

I received the following email this morning from one of my brokers, Zecco:

This mailing is interesting for two reasons. First, soliciting regular brokerage account holders for gold and silver futures trading shows how mainstream these investments have come over the last few years. When I first started investing in gold in 2005 I never encountered this sort of pitch. Second, the offer to trade at "up to 100:1 leverage" is simply incredible. At this level, a 1% move against an investor will wipe them out. What lunacy.

Zecco is not a bad service though. For my review of Zecco and other brokers please visit my other site Online Broker Review.

For the record, we think that gold still has a long way to go before its bull market ends. Until we see the kind of spectacular parabolic blow off that fits with a generational top, we see no reason to be bearish on gold.
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