Risk Update: Belief in the Gold Bears

gold bears

by Jeff Clark – Hard Assets Alliance :gold bears

Remember last year’s calls for $800 gold? Some projections were even lower (Hello, Harry Dent). None came true. And the likelihood of them coming to pass now is about the same as winning the lottery. Twice.

Those bearish calls were too extreme (and some, profit-motivated) and are frequently based on a “bandwagon” mentality. Don’t believe every bear article you read on gold, especially if the author has a vested interest in seeing a lower price. There will always be someone with a negative view on gold—even when it climbs $1,000 or more in the not-so-distant future.

Meanwhile, I’ll point out that the JPMorgan Natural Resources fund—whose parent company hasn’t always been positive on gold—plans to increase its position in gold.

• “We have increased our gold position from a low of 13% to close to 20% of the fund….” (Portfolio Manager James Sutton)

Article originally posted in the February issue of Smart Metals Investor at HardAssetsAlliance.com.

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