I was told by a friend in the park last night that gold was going to plunge… he was convinced that gold would go below $850 – his charts had told him so. This along with the plethora of negative stories about gold and silver that is washing around the internet world makes me think that many of the former gold and precious metal bugs have now left the field.

And I must say that excites me as when everyone is on one side of the boat it is time to move across to the other side. And it seems that I’m not altogether alone:

“Gold is considered one of the most popular “safe havens” during times of financial uncertainty. However, since March, gold has been in a slump and it has many investors questioning where else they could put their money. U.S. Treasuries just are not cutting it right now as yields are low and do not provide a big enough return to entice investors.

As of late investors have been turning to utilities and high grade corporate debt for their safe haven needs but history suggests that gold could be due for another bullish leg up, according to Martin Grubb, the managing director of investments for the World Gold Council.

Grubb says that it is not unusual for gold to have a delayed reaction to macro events. In this case, gold has certainly had a very limited response to the European debt crisis. However, let’s look at a historical timeline to determine whether or not Grubb’s case is valid.” http://seekingalpha.com/article/723861-gold-rally-on-the-way?source=email_portfolio&ifp=0