If you want to really know what’s going on in the gold market, take your news like you take your medicine—very carefully. Posted by James Randolph on November 22, 2011
Pundits Slander the Gold Market…Again
November 22, 2011 – It has become a disturbingly common occurrence for well-known economists, investors, and even professors to get knocking the gold market. One wonders if these powerhouse pundits actually watch the gold market or read the news at all. If they had been watching the markets, how could they not have spotted the price of gold today as a flashing beacon in the stormy sea of finance?
And, yes, these pundits sometimes include government men and financial heavyweights. Of course, last I read the government couldn’t pay its bills or even organize a Congressional Super Committee to reduce the deficit. And while George Soros may say gold is a bubble on television, his biggest buy of the last quarter last year was gold. He was buying while he was knocking it.
And that’s generally the formula these financial hit men have been following for years. Soros was talking about a bubble that was about to burst in 2010 when gold hit $1,500 per ounce. Of course, we all know there was not a bubble at $1,500 and it did not burst. If any of these acclaimed economists who knocked gold actually followed their own advice, their personal fortunes would have been traded away.
Everyone makes mistakes and the markets are fickle things indeed, but gold is as solid an investment as it gets. For a mid to long term position, it’s pretty easy for this author, at least, to say confidently whether it will increase in value or not.
Is gold in a bubble? Not according to central banks around the world who are net buyers and buying at rates not seen in forty years. Not according to reports from Goldman Sachs and Credit Suisse to their customers forecasting a strong position in gold through 2012. Gold is the best performing asset of the past twelve months, it’s up 600 per cent in the last decade, and it’s outperformed the S&P 500 by 23 per cent year to date.
If you want to really know what’s going on in the gold market, take your news like you take your medicine—very carefully. Watching major network broadcasts will distinctively put you behind the curve, as has been so aptly demonstrated in these past three to four years. While the motivations, thinking, and strategies of these self- proclaimed pundits cannot be legitimately known, you can easily determine their trustworthiness by taking a note on what they said back when and determining whether they were right. The people telling the truth about the gold market and its astronomical potential in the coming years are only a handful. But they’ve been right so far. Isn’t it time to listen?
Senior Staff Writer – Certified Gold Exchange