With the September FOMC statement now only hours away, the MSM Gold Haters are out in FULL FORCE…
By Rory Hall, The Daily Coin:
We can’t have too much positive news about gold in the mainstream media. As a matter of fact, one has dig deep to find mainstream media shinning a positive light on the gold market. There are plenty of gold haters for every MSM outlet on the planet.
With the Fed’s next policy meeting looming this week, hedge funds are exiting from gold. Speculators cut their bets on a bullion rally by the most in more than three months. Holdings in global exchange-traded funds backed by the metal are down from a three-year high in August. Aggregate open interest in New York futures is mired in the longest slump since May.
Speculation is mounting that Fed officials, in a statement scheduled for release on Sept. 21, will signal that higher U.S. interest rates are on the way. That’s bad news for gold, which thrives as an alternative asset. Through Friday, the metal had surged 24 percent for the year as the policy makers declined to raise borrowing costs. Source
Of course, no good gold bashing article would be complete, especially this week, with offering some type of warning about the Federal Reserve raising interest rates or not raising interest rates. It seems the algorithms like it when their fed Fed speak as the DJIA and S&P almost always respond in kind and rally to “new all time highs!!!”
There is one interesting piece of actual news in the Bloomberg hit piece. They are reporting that inflation is on target to meet the Federal Reserve’s expectation of 2% for the month of August. Translation = we had 2 more percent of our wealth transferred to the oligarchs in August. Annual rate would be equal to 24%, so, if you not all that jazzed about the Federal Reserve and their crony friends stealing another 2% of your wealth it is understandable. Here’s the latest on the “silent theft” known as inflation.
The cost of living in the U.S. rose more than projected in August and moved closer to the central bank’s goal, Labor Department figures showed Friday. At the same time, the dollar has climbed in three of the previous four weeks. Gold prices declined for three straight years through 2015 as the greenback advanced. Source
Next we find the Wall Street Journal chiming in to discuss the Indian gold market. Possibly the single most important gold market in the world. Indian’s gold season is just getting started and now would be a good time to tell the world how poorly gold is doing for the coming festival and wedding season. WSJ also uses the words “sky high gold prices” – nothing could be further from the truth. If gold prices were “sky high” an ounce of gold would be more than $2k per ounce. It seems the import tax that was put into place in March of this year has curtailed gold imports through official channels. In a recently penned article we pointed out that India media sources discuss physical gold smuggling as it is such an integral part of the gold market in Indian. We find no mention of smuggling by WSJ.
“There are a lot of people who have been coming to sell their gold these days. People want to cash in on the high prices,” Mr. Malhotra said, noting that customers have been trading items as small as nose pins.
Gold holds a special place in India, which vies with China as the world’s top gold consumer. But with prices sky high, many Indians have decided it is time to sell the family jewels.
So much recycled gold has come into the system in the past few months that it has met 45% to 60% of the local gold demand, said Bachhraj Bamalwa, director of All India Gems and Jewellery Trade Federation.
That has contributed to a plunge in India’s gold imports. In the first eight months of the year, imports tumbled by more than 50%, to less than 300 tons, while August imports of 26 tons were down 81% from the same month last year, according to Commerzbank.
A controversial new 1% excise tax on manufactured gold products, which prompted some Indian gold shops to close in protest for several weeks starting early March, has also weighed on import demand. The high prices, too, have curtailed demand. Source
While both of these articles are subtle in their approach and do not out-right attack gold, the words that are used serve two purposes.
First and foremost, the words used are directed at both institutional and retail investors. Words like “mired in the longest slump” is an emotional trigger for investors and provides a fuel for the algorithms as well. These words are intended to scare investors and make the algorithms push gold lower. Mission accomplished, gold is flat (not up or down) for the day. Make no mistake about it these articles are crafted by wordsmiths at the top of their profession. It is no mistake these articles, primarily from Western media sources, line up to bash gold and very rarely ever discuss gold in a positive way, much less, the virtues of owning physical gold.
Gold is still money and that is not going to change because the mainstream media produces hatchet articles dispelling gold.
One would think with all the changes happening with the IMF, SDR and the coming global currency change people would be interested in possessing physical gold. The number of people coming into the market does not reflect any sense of urgency or knowledge of what is actually happening. When people awaken one morning only to find the Federal Reserve Notes have changed maybe then they will awaken to the possibility that their world just changed. Maybe then these people will look back at this article, scratch their head and realize how foolish they have been for listening to deceitful, misleading information and accepting the garbage they were fed. Not really looking for that to happen, but anything’s possible.
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