In the face of escalating derivatives and sovereign debt crises, the cartel trots out hundreds of millions of ounces of PAPER gold and silver (as evidenced by Wednesday’s 500 million ounce paper silver dumping in 1 hour) and dumps them on the market en masse uncaring of the price of bids, to induce waterfall declines in the metals.
Que the MOPE machine, who then rides in and attempts to scare the public out of gold and silver by claiming things like ‘Gold is No Longer a Safe Haven‘.
Of course it must be a coincidence that the senior writer who published the BS for CNBC happens to be an ex-commodities trader both AIG and Drexel Burnham Lambert- the infamous silver shorts.
Spechler goes to great lengths to convince investors that gold is a commodity, and it is not gold that is the true safe haven, but the dollar.
This keeps the sheople from even considering converting face-palm shares into physical gold or silver- at one of the best stacking opportunities since 2008.
Why Gold Is No Longer a Safe Haven for Investors
By: Lori Spechler
Senior Editor, CNBC
After falling five of the last six trading sessions, gold has given up all of its gains for 2012, settling at its lowest price of the year.
With financial turmoil in the euro zone and global growth slowing, market watchers are starting to ask, what is driving the price of gold lower?
Nouriel Roubini, cofounder of Roubini Economics raised the question on Twitter today:
“Gold down to $1562. Gold bugs hiding deep in their gold caves pondering why gold isn’t rallying in spite of sharp spike in risk-off sentiment.”
When financials systems are stressed, money tends to flow to “safe havens” which for some investors, includes gold [XAU= 1559.40 -1.68 (-0.11%) ]. The reality, however has been different—money has been moving into the “safe haven” of the U.S. dollar and away from commodities including, gold. (Sorry, nice try, but gold and silver are not mere commodities, as much as CNBC and The Bernank would love you to believe otherwise)
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