Im bullish on gold, very bullish and have been for quite sometime, however seeing gold being pushed on a daily basis and seeing the commercials all over television and in papers has me thinking a short term top is coming. News out today is saying that now consumers can go to Sears and Kmart to change jewelry for cash, this would make me step away from gold in the short term even though I know its going higher. Sears, Kmart to Offer Cash-for-Gold Service Published: Monday, 17 May 2010 | 11:13 AM ET Text Size By: Reuters Sears, which expanded its layaway program to help cash-strapped consumers pay for purchases during the recession, is now helping its customers exchange their jewelry for cash as gold prices soar. The new service, available at the jewelry departments of Sears and Kmart stores, allows customers to send their gold and silver items to Pro Gold Network, a company that buys precious metals from consumers. Pro Gold makes an offer on the gold or silver and the consumer can choose to accept the offer or have the items returned, free of charge, Sears said. Sears [SHLD 105.16 -3.74 (-3.43%) ] provides the shipping envelope and also helps consumers track the items via websites or a toll-free customer service number. Sears has seen sales pressured over the past two years by the weak economy and has also lost sales to discounters like Wal-Mart [WMT 54.15 1.42 (+2.69%) ]and electronics retailers like Best Buy [BBY 43.09 -0.15 (-0.35%) ]. The company did say, however, that sales improved in the first quarter. In 2008, it expanded its layaway program as a way to help cash-strapped consumers pay for goods. Advertising from companies offering gold recycling services had reached a fever pitch in late 2008 due to a global economic crisis, as the price of gold climbed above $1,000 an ounce in a flight to safety. Last week, gold soared to record highs at just below $1,250 an ounce as jittery investors fretted over sovereign risks and inflation. Bullion is still far away from its inflation-adjusted record at over $2,200, analysts said. In 2001, gold was trading at just $250 an ounce.
Perhaps these operators see an opportunity to "pawn shop" purchase customers jewelry before the real move takes place. Something to think about.
Being bullish about gold is when the public are all buying gold....not selling gold. Time to call gold a top is when they are advertising to sell gold....like in todays WSJ....Gold Eagle anyone?