Sharma also thinks the gold market is crowded and that people are too bullish, but believes in long-term higher gold prices. "For investors who have no gold right now I have one simple question for you -- what are you thinking?" Sharma says. Sharma recommends adding to a core position on price dips.
Silver prices settled 27 cents higher at $19.94 while copper closed flat at $3.50.
Gold mining stocks, a risky but potentially profitable way to buy gold, were mixed. AngloGold Ashanti (AU) was up 0.18% to $43.93 while Freeport McMoRan Copper & Gold (FCX) was up 1.87% to $78.40. Other gold stocks New Gold (NGD) and Gold Fields (GFI) were trading at $6.38 and $14.62, respectively. Goldcorp (GG) announced this morning that it will buy Andean Resources, a precious metal explorer with a gold deposit in the Andes, for $3.4 billion. The project in Santa Cruz has 3.1 million ounces in gold resources and 25 million ounces of silver. Shares were trading almost more than 2% lower at $42.76. -- Written by Alix Steel in New York. >To follow the writer on Twitter, go to http://twitter.com/adsteel.