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In 2008, when Gold was trading below $800 per ounce, the Gold VIX index (GVZ) was hitting 66, (fear was high, which was bullish for Gold), now its trading at less than 22.
As Gold was hitting the Power of the Pattern‘s $1,900 per ounce target a year ago this week (see $1,900 target), the GVZ was hitting lows at (2) in the above chart. At the same time Gold is hitting the Power of the Patterns target, GLD became the largest ETF in the world! Crowded trade?!?!? (see GLD, largest ETF in the world)
Now the GVZ is hitting lower lows a year later, with Gold down almost 10% from a year ago, nearing the end of a flag/pennant pattern.
Should investors fear the “Lack of Fear” in Gold and many products right now at (4) in the above chart?