Gold Prices: Is a Bottom Bell Ringing For Gold?

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.

  Related: This Paper Suggests a Way Forward for China! Details Here. 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated with a business degree, then worked with Macy's. After Macy's he spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined a well-known financial planning firm as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where he worked first for a small manufacturing consulting company, then a major university. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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