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7 Vulnerable Gold Stocks to Sell

WINDERMERE, Florida ( Stockpickr) -- It seems like the entire world is bullish on gold. Every trader I talk to, everywhere I turn, and everything I read is predominantly bullish on the future prices for gold. Every time I turn on the financial news channels, I seem to catch a guest talking up gold. Even central banks around the globe rarely say or do anything that is considered bearish to gold.

Just take a look at a few of these gold bull examples. Famous hedge fund manager John Paulson recently said that gold could hit $4,000 an ounce. According to permabear Peter Schiff, who has a target of $8,000 to $10,000 an ounce, gold is still a bargain. Jim Rogers is calling for gold to hit $2,000 in five years, a more tepid forecast. Even Barron's came out with a bullish piece on gold this weakened called "A Golden Era for the Yellow Metal," which forecasted that gold prices will average $1,500 an ounce by 2015.

Now even the investment banks are getting in on the party. Just this morning, Goldman Sachs Group (GS) announced an upward revision for its gold forecasts to $1,400 an ounce, $1,525 an ounce and $1,650 an ounce on three-, six- and 12-month horizons, respectively.

And if all of that isn't enough for you, we had the ridiculous news last week that gold vending machines are coming to the U.S. That's right, a German company called Gold to Go plans to have 35 machines in place by the end of December, with the first machines to be installed in Florida and Las Vegas. Consumers will be able to purchase gold with debit cards in 1-, 5- and 10-gram and 1-ounce bars.

So you see why I think it seems everyone is bullish on gold. Sure, some of these bulls, like Paulson and Goldman, are smart money, and their bullish stand on gold shouldn't be taken for granted. But what I don't like about all this bullish gold chatter is that it's all happening at the same time, when gold prices are trading near all-time highs.

Fundamentally, I can understand why everyone loves gold here, since the arguments for higher prices are sound. These arguments are well-known, ranging from worldwide currency devaluation ( currency wars ) to a hedge inflation to a permanent hedge against global and political dislocation.

>>Also: 2 Gold Stocks That Will Double by 2011
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