Gold Sentiment Gets Nasty!

Sentiment has been turning very bearish in Gold recently. First the fears that IMF would unload 400 tons of Gold to help plug a funding deficit then the media attention on the sudden drop in GLD's gold holdings that "spooked" investors".

According to the report on the GLD outflows, "analysts cautioned that a continued outflow could be an indication that further liquidation in the gold market might be on its way."

And look at the analyses that are being bandied about these days among amateur investors:

• "Gold and US Real Estate Quietly Breaking Down"
  http://biz.yahoo.com/seekingalpha/070521/36092_id.html?.v=1
  
  "Why I'm Selling My Gold and Silver"
  http://biz.yahoo.com/seekingalpha/070517/35796_id.html?.v=1
  
  "Are Gold Stocks Hanging in the Balance?"
  http://gold.seekingalpha.com/article/35844?source=i_email&u=30946

Of course, not every analyst is bearish, but still, there does seem to be a fair amount of fear among gold investors these days which is being fueled by media reports. No doubt a part of it originates from memories of last year's painfully unpleasant May super selloff in Gold that continues to linger in the minds of Gold bulls.

Whatever the reason, fear usually means opportunity. The current horrible sentiment among gold investors is just making me all the more bullish.