CNN Money’s Nin-Hai Tseng (previously a reporter covering development and land-use policy…obviously an expert on gold!) today released a hit piece on gold filled with disinformation and flat out fallacies. Do you really think this is Nin-Hai’s opinion, or is she and others like her in the MSM being paid mega-bucks to produce fear-inducing articles on gold? Do you think there’s more money to be made in serving in the elitist banksters’ propaganda wing, or in valid thoughts on precious metals on a marginal blog called SilverDoctors?
Gold prices are nearing bear market territory, and yet the global economic fear that drove many investors to the metal remains. What gives?
For most of 2011, it seemed like nothing could stop prices from climbing — gold prices peaked in September at more than $1,900 an ounce.
But in recent months, many high-profile investors have sold their positions, suggesting that gold’s glory days could be coming to an end.
Billionaire investor George Soros, who called gold “the ultimate bubble,” cut his holdings in the SPDR Gold Trust (GLD) as early as May. Hedge fund manager and long-time gold bull John Paulson held tight for a few months, but eventually slashed his gold holdings by a third during the third quarter.
And last week, economist Dennis Gartman, who correctly predicted the slump in commodities in 2008, sold off the last of his bullion. He stresses that he isn’t bearish on gold, but thinks the precious metal isn’t exactly the safe haven that many investors have come to know it. And t-bonds are!?!
Admittedly, few are screaming bear in the gold market. But even the most bullish investors admit sentiments have changed in a noticeable way.
The last time gold went bust was in 1980, when prices dropped more than 60% in a single year. It wasn’t until 20 years later, in 2000, that investors saw positive returns. Is gold returning to a bear market?
The rest of the propaganda can be found at CNNMoney
Note how the author brings out big names that have sold a large portion or all of their gold holdings. (if Dennis Gartman just sold all of his gold, he must have been referring to his wife’s engagement ring that he just lost in a game of 5 card stud), suggests that gold is the ultimate bubble, and then attempts to invoke fear by stating that gold had a 20 year bear market at the end of its last bull run.
Please also note that Soros did not just recently make that “gold is the ultimate bubble” comment, the statement was in 2010 with gold around $1,200/oz, and Soros was stating that gold would be the ultimate bubble as a result of low real interest rates. Has that environment changed?