The gold market’s recent surge may not last as one expert warns of potential risks ahead.
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00:00Well, I think the gold market is putting in a bit of a blow off top.
00:04Obviously, we've seen some some really impressive gains and we've gone parabolic here in the last couple of weeks.
00:09But I've seen this price action before this.
00:13We are as overbought today as we were in the summer of 2011.
00:16And, you know, we haven't been this overbought since.
00:19And in 2011, gold was in a situation where everybody wanted to be long gold.
00:24It was extremely popular.
00:25They're popular. There were inflows just like we're seeing today.
00:27There's massive inflows coming into ETFs, gold futures, and everybody wants to own gold.
00:33But the reality is when everybody has the same idea, the markets tend to do the other, you know, the opposite.
00:40There's usually a rug pull.
00:42This is an 80-20 game.
00:4480% of speculators, and I'm not talking about investors.
00:47I'm talking about speculators, people that are with hot money that are chasing prices.
00:5280% of those people are generally wrong.
00:5480% of analysts are generally wrong.
00:56It's a really tough game to predict what the future is going to hold.
01:00And if 80%, which is roughly what our polling suggests, are already bullish gold, the odds are we probably get some sort of surprise to the downside.
01:10So if you've made money in the gold market on the way up, please protect yourself.
01:14Take some off the table.
01:15Maybe even take all of it off the table and see what happens.