One of the old sayings in trading pits was that “They don’t ring a bell at tops and bottoms“. This of course referred to the opening and closing bells rung on Wall Street for market opening and closing. But is this really true? We all see the news, and there are some consistent attention-getters around tops and bottoms. As we’ll see in a moment, this has implications for gold prices as much as anything else.
For example – when everyone is bearish, we’re at a bottom. When the last bear throws in the towel we’re pretty near a top. In 1999, mutual funds and ETFs were changing their names almost every day to include the word “internet”, even when the connection was dubious. at best On Friday Vanguard announced they were changing the name and operating parameters for 2 of their active funds. The one that concerns us is Vanguard Precious Metals and Mining Fund (VGPMX), a $2.3 billion fund that will be renamed to Vanguard Global Capital Cycles Fund. Wellington Management Company LLP is the new fund manager effective 7/27/2018.
The big part of the change is the expansion of fund investment parameters to include precious metals. Is that a bottom bell ringing for gold? Could be. Our friends at ZeroHedge put together a somewhat-rambling set of “pointing fingers” about this; we’ll take an easy day today and nominate it for today’s featured article. Then let us know in the Comments if you think we’re at the bottom for gold.