I had the chance to reconnect today with one of the young emerging leaders of the gold market, Ronald Stoeferle, publisher of “In Gold We Trust”, the world’s definitive annual report on gold.
During this fascinating interview, Ronald spoke to what contrarian buyers are doing right now, and further explained, “the point of maximum pessimism” has been reached, to where in response, staggering physical demand nearly broke the leveraged paper gold system over the last week.
Starting out by commenting on the ugly sentiment displayed at last week’s European Gold Conference in Zurich, Ronald said, “If you compare the situation at the hotel bar to last year and the year before…[patronage] increased dramatically—so people were really frustrated. From a psychological point of view, it was a really interesting time to attend a gold miners conference…[because] last year’s sentiment was already extremely negative, [but] this year it was just horrible…I think this was a gathering of the last [remaining] gold bulls in Europe.”
Further speaking to sentiment, Ronald added that, “We’ve already reached the point of maximum pessimism…We’ve seen a huge move downwards, extremely high volume, and the ‘bursting gold bubble’ [headline]…all over Europe, and all over the world. That’s a textbook panic…[Additionally], there were 15 journalists calling me on Monday…[including] many former colleagues, people who haven’t called me in years and they were [all] really panicking…They have no clue what’s going on, [and] they [all] think…Cyprus was responsible for this take-down…[So] over the last week we’ve seen desperation, panic, and anger.” ...