Just in time for silver to catch a breather, gold steps in, and hits a fresh all time high of $1,432.57. Alas since this price action is merely stragglers loading up as a semi-mute Cramer, who suddenly has no 100x fwd P/E momentum stocks to pitch, goes back to pushing gold. As such the spike is likely rather temporary (for now).
At least for those who care, and keep score, uber-market timer Doug Kass may have just burned his last ounce of credibility. As a reminder this is what we said back on December 21:
Last night Doug Kass appeared on CNBC's Fast Money and
caught the attention of the few who were watching the show with his
gloomy prediction that gold would drop by 25% in the next year. As we noted last night, Kass' "thesis" was nothing more than a recap of the bearish half of the "All that glitters"
letter released by Oaktree's Chairman Howard Marks, and not even a
mention of the bullish section of the letter. That's fine. In fact, we
welcomed this development as it at least partially offset the bullish
sentiment on gold espoused by Kass' partner at The Street Jim Cramer,
whose glowing recommendation of gold has had us very concerned about the
price action in the precious metal into year end: after all there is no
surer kiss of death that Cramer liking something. That said, as for Mr.
Kass' predictive abilities, we would like to present his prior set of
forecasts, specifically his prediction for 2010 issued a year ago almost
to the day. With a predictive "hit rate" of about 25%, it is rather
safe to assume that gold's path to $2,000 and higher is probably quite