Kiosk carnage becomes indicator of gold's top

Tom Grill | Age Fotostock | Getty Images

Wall Street didn't call the top in gold—the neighborhood mall did, Buyers may want to be cognizant of that before the next craze takes hold.

It used to be that kiosks had cornered the market on retail bullion. All you had to do is follow the growing number of gold kiosks offering to buy used jewelry and coins in 2011. That's the year when gold prices were on a tear and hit fresh highs in the $1,900 range.

As big investment firms were hiking their forecasts to more than $2,000 an ounce, Main Street was trying to cash in by convincing people they could be missing the opportunity of a lifetime.

Yet even if that was true, was the place to sell your used jewelry really at a booth between a Forever 21 and Macy's?

"At that point, the smart money is out the door," said Huntington Asset Advisors senior portfolio manager Peter Sorrentino, who warned three and a half years ago that kiosks signaled a mature phase in gold's rally.