At first, it was an oddity of the riches of the Middle East, Then, it migrated to London. Now, the U.S. has Gold to Go, a gold ATM that allows you to take gold out, in exchange for paper money.
I’ve been around a long, long time and the last time U.S. citizens were hocking the family silver, melting their gold watches or selling antique heirlooms made of precious metals, was in 1980, when gold and silver topped out and, ultimately, crashed.
While I am not predicting an imminent crash in commodities, I have been issuing warnings for investors to play with house money... a good idea, since gold ATMs are now in Las Vegas.
But, I am very close to issuing an outright sell on commodity investments, since the party is getting a little out of hand.
There are plenty of fundamental reasons to remain bullish on materials: strong growth in emerging markets; a rebound in the U.S. economy; weak paper currencies, etc., etc., etc.
But, as I watch for technical divergences like silver and paladium outperforming gold and platinum, or mining stocks underperforming the underlying metals, I am willing to wager that this bull run in commodities is coming to a conclusion.
In fact, let’s sell your commodities now. Whether held in mining shares, natural resource stocks or Exchange Traded Funds (ETFs), it will be more fun to preserve capital and watch from the sidelines than to get your hand caught in the gold-to-go cookie jar.