Just listened to EWI’s bit on sentiment, being the lowest ever recorded. So it should rally from here, and this chart does confirm we should get a bounce:

So now the question is, how high will it go? Are we in the early stages of a new Bull market? (Where is the inflation?)

Or is this going to be another Bear rally like we just had?

Or maybe, it just keeps going down. (Not likely, by every measure I can come up with its extremely oversold, so we should at least get a bounce, perhaps enough to fool the gold bugs once again)

So where do we go from here? I’m a long term bear, I just do not see how gold can go up in a deflationary environment, short of government doing another gold steal like they did in the 30’s. (As a used and rare bookseller I’ve been living with deflation for a very long time)