If you’re not familiar with the Canary in the coal mine example, see previous post.
If you are looking for a sign of a top in the Gold Market, look no further than Boca Raton, FL where a local company just installed a vending machine that dispenses gold bars. The end of the bull run in gold might not end today, but if history is any guide, we can’t be more than a couple of months away from a major correction.
It’s the old cover of the magazine syndrome. Do your own research and you’ll find that whatever was on the cover of Time Magazine (for example) has typically been toward the end of its life cycle, not the beginning. Putting a vending machine the sells precious metals in a shopping mall feels like a top – to me anyway.
You’ve all seen the commercials “WE BUY GOLD” or “CASH FOR GOLD” It’s bad enough to pray on unsuspecting people selling their gold from a TV commercial or infomercial for much less than it’s actually worth, but now your going to pay a premium over the current market price to purchase a gold bar from a vending machine. Who needs a gold bar in such a hurry that you have to pay a premium for it?
Invest with Vigilance, and don’t waste your money on dumb stuff.