Currently, I don't think it's possible for the media reporting and investor sentiment to get any more negative toward gold. But quite frankly, given the extreme negative sentiment, in addition to the numerous other contrarian indicators I've outlined in previous articles, I have never in my life seen a market set up technically for a big bull move as gold/silver and the mining stocks are now. - Dave Kranzler, Seeking Alpha: LINK
Let's be clear here, if I thought the fundamentals of the global financial system were improving in a way that was negative for gold, I would go short gold and load up on stocks and junk bonds. No question about that. When I came out of business school in 1991, I was one of two top-10 b-school grads who went into junk bonds. That's 2 people out of about 5000 grads. No one was interested in junk bonds in 1991. But I had examined the fundamentals and determined that it was still a valid form of corporate finance. Recall, Drexel had just collapsed and everyone was screaming that junk bonds were dead. In fact, 1992 marked the start of a new bull market in junk bonds.
The key to understanding relative value is not found in charts, "technical" indicators, CNBC, Bloomberg News, any Wall Street research, Barron's, chat board, etc. Realistic and honest assessment and study of fundamentals is nowhere to be found in any of those sources. None. Zero.
The key to understanding value is doing your own research, which includes knowing where to look to find the best possible information available. Since 2002, when I first really understood just how corrupted and doomed the U.S. financial and political system is ...