Gold $GLD The Pawnbrokers Sneaky Theft.

Gold. Buy Sell Hold or maybe ignore. What are the metrics after the federal debt ceiling crisis goes on hold for several weeks? Will gold go up? How do we know?

Here is one surprising metric which reflects deep cynicism of John Q Public. Pawn brokers seem to be very active encouraging people to bring in their jewelry and get a friendly no interest loan. If you live in a major market in North America pay attention to the advertising pawnbrokers are engaging in.

They are encouraging the financially un-informed to bring in their jewelry. Of course they only deal in todays prices which are down a wee bit shall we say. The squeeze is on and the financially in astute fall for the sell low buy high strategy. Later if they keep their jobs they’ll be back in the market buying high mark up jewelry and start the whole cycle again.

So if you trade Gold and are looking for a market place behaviour pay attention to your local pawn broker and how he advertises. They are all going long at these levels.

George Gutowski writes from a caveat emptor perspective. Follow him on Twitter @financialskepti