The Sarcasm Report v.219

July 14, 2015
For the first time since August 2009, gold is cheap

At $1,159, gold hits a 61.8% Fibonacci retracement from its all-time high, a key technical support level.

You heard it here first, folks. Gold is sitting right on its Fibonacci retracement level. I can't even begin to tell you how many investments I've made over the years based on the works of Fibonacci, considered to be the most talented Western mathematician of the Middle Ages.

Wouldn't have even considered buying a house in 1997 without consulting the master's works. And that Camry in 1996? You betcha. It didn't all go as planned though. The car's resale price eventually fell right through its Fibonacci retracement level and like a fool, I still own it. What was I thinking? Oh, sure. It still runs great. Has less than 90k miles on it. But still, I know I'm missing something, the very least of which is that new car smell and the monthly payments that go with it.

Bensignor adds that at around current prices, almost every buyer since 2009 is holding a losing position, and in his view, it's either time for a further drop or a bounce higher: the current price won't be sustained.

Kreskin? Jean Dixon? Nostradamus? Step aside. There's a new fortune teller emerging and his name is Rick Bensignor, chief market strategist at R.F. Lafferty. If he says the price of gold, one of the most volatile priced metals in the periodic table, is either going up or down from here, then you can take that to the bank. Invest accordingly!

Disclosure: Had one third of my retirement nest egg in gold and silver from 2004 to 2006. These precious metals treated me very well (50% gain). For what it is worth, no desire to own either again, at these prices. Early in and early out was my plan from the beginning.