Bearish Article on Gold

By Biiwii

A bullish article on gold that is well, you know… and to boot it’s got a pretty picture of some shiny gold bars!

Ref:  Gold has everything in its favor

Everything?  Really sir?  Do tell…

“This year’s rally has legs, spurred by the right economic conditions”

Well yes, they were the economic conditions that were an important part of the Macrocosm, which we began gauging last summer.  Okay, so were you and MarketWatch writing these things when it was time to get bullish late last year or just now after a $200/oz. rally?  Just curious.

“Left for dead for almost four years, gold has suddenly made an amazing comeback: It’s up over 50% this year.”

Why does the MSM always find a need to use words like “amazing”?  Gold’s rise was not amazing, it was logical, given the early 2016 risk ‘off’ environment and its own solid fundamentals (after years of poor fundamentals).

“Several gold investors who have enjoyed the ride so far believe the next move is up from here — possibly even taking out prior highs for the metal” 

First of all, you don’t “enjoy the ride” in gold.  You take comfort in the fact that it will be stable in times of stress and discomfort.  Substance abuser.   Now we are on to taking out the prior highs already?  So who is advising this?  Well, he then trots out the laundry list of always-bullish gold fund managers.  That’s who.  They are enjoying the ride but they were also fully on board the ride down to below 1100.  Let’s have perspective.

Now, I do and always have liked John Hathaway, so take my wise assery with a grain of salt.  Hathaway is talking longer-term and always has been long-term oriented.  So am I, having bought in 2002-2003 and having sat like a contented mother hen through the bear.  But it is the MSM and its stupid puff pieces that I object to; writing positively about gold simply because that is what the public wants to read right now.

The article goes on to list some right minded and some wrong headed reasons to buy gold.  Also, the obligatory stock picks are trotted out (including my own KLDX… thanks).  Then the blah blah blah into the close.  Another article on gold in the books and it comes right at a time when we can expect a negative reaction or correction in the precious metals.  Perfect.

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