What has me pissed off with the 'top callers' is the lack of any sense of proportion from these people when they issue their comments. I do not think you will find any rational investor that believes there are not going to be corrections along the way as part of any secular bull market in gold. So anyone that wants to pontificate about the overextended nature of a gold rally may just as well be pounding the table that the sky is BLUE, or the sun will RISE tomorrow!!! with the same sense of urgency. So we got a nasty correction in gold... big deal. My disgust with the Nadlers of the world comes down their failure to acknowledge the correction as just that: a normal, frequent event that is part of the story for gold, and always has been.

Instead, we get simplistic analysis of how gold should be fairly valued at $500-600 an ounce based on historical price assumptions and the old myth of supply-demand. Or we are told that gold is a bubble and has formed a top. These types of comments are completely unrelated to any concept of a normal correction.

And why do the top callers never discuss the related issues that are part of the overall story with gold? For example, do these people seriously believe that inflation is going away? Do they think that a large Fed rate cut announced last week is dollar bullish? Do they believe that the housing sector in the US has reached a bottom, and therefore an end is in sight to the ongoing financial crisis that is now a worldwide phenomenom? See, any of the above issues is going to have a direct impact on gold, and gold cannot form a long term top if any of the above trends will remain in effect. Yet no commentary that I have read will go into these points, and instead gold is just considered in isolation.

It is easy to suggest a top is at hand for anything once a dramatic move has been underway for a while. It is far more relevant however to break down the reasons for a big move in the first place, and then discuss if the driving forces behind the move remain in effect. Then one can separate out the counter-trend reactions as just that: temporary consolidations within a longer uptrend.

So I do not have any respect for the bozos that are patting themselves on the back with their top calls. Nadler has been behind the curve all the way through this bull market, and I think he is a paid schill with an agenda to talk gold lower. Some of the other clowns that have been calling gold a bubble since it broke above $500 are even less worthy of respect.

I am buying more bullion this week, I just have not decided if it will be gold or silver bars.

cheers!

mike