So, it turns out “The Donald” is now accepting gold as a form of payment for his real estate properties partly in protest against Chairman Bernanke’s easy-as-can-be monetary policy.
I noted on Monday that the miners were putting in bearish reversals, and the silver miners especially seemed to be confirming that bearish evening star pattern, losing their respective 50 day moving average today on SIL (ETF for silver miners). Moreover, the junior gold miners have erased virtually all of the gains from late-August.
Now, I realize that the miners and the metals themselves often trade in separate worlds, but from a contrarian perspective, coupled with the sudden turn of events in the technicals, perhaps gold is putting in a more meaningful top than we think right now. To be sure, the bullion has been in a fierce, multi-year bull run. Bull markets of that magnitude tend go out with a bang rather than a whimper. I am not sure we have seen that big bang yet, but we must be getting closer when real estate tycoons accept gold as a legitimate form of payment. Note also we are seeing more liquidity enter global capital markets, yet gold is down today. When something starts going down on what is supposed to be bullish news, it often reinforces the “top” thesis.