Stan Druckenmiller caused a big hullabaloo right after the election when he said that he sold his entire gold position. My post about it the next day talked about the “news”:
“First of all, anyone who sold gold into the grotesquely bearish upthrust on Tuesday did a very good job…….So Stan Druckenmiller was one who sold all of his gold Tuesday night. He’s one of the few big money managers around whom I respect (even though he did work for the ancient mummy idiot George Soros). But long ago when I became confident in my ability to survive in this business, listening to others’ market views became a distraction. My outlook for gold is much different than Druckenmiller’s. If gold is in a bull market, which is my view, then selling waves are potentially buying opportunities.”
Now there is an article claiming Stan Druckenmiller has “bought his gold position back”. And if this is the case, then he made a nice trade, selling into an ugly bearish upthrust on election night, and buying it back lower. Whatever he did doesn’t change the fact that gold is in a major bull market which began in December of 2015, and my belief we’d see a retest of the December 2015 low, but at a higher low in late 2016. Mr. Druckenmiller’s buying or selling doesn’t change the European and global political problems, the Euro banking problems, the Japanese banking problems, and the derivatives problems. Nor does it change the global currency problems, and the debt problems. Need we go on? Gold just needed to get out a lot of the weak hands into the December 2015 lows, and again late last year. The weak hands will continue this dumb behavior of getting in en masse too late and then getting shaken out, but that won’t stop this bull market. Gold, silver and the miners are in a big bull market, but into the big rallies is not the place to enter.
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