WSJ piece about gold outpacing the S&P 500 so far in 2017. This is not a “bullish” article, this is a last ditch effort to slow the massive physical gold demand just as the rocket jet engines ignite…
First some bland bullish excerpts from the WSJ gold story out today. They are not very easy to find:
Gold is on track to outperform stocks for the first time since 2011, highlighting the uncertainty that has accompanied this year’s stock market gains.
A stock market rally that hasn’t had a significant pullback in 19 months has amplified concerns that any correction could be swift and sharp, especially with valuations for many sectors near historic highs.
But other years of large gains in both stocks and gold haven’t necessarily foretold ill market tidings. The S&P rose 26% and gold 20% in 2003, in the midst of the recovery from the 2001 recession. The S&P rose 14% and gold 23% in 2006, the year before the financial crisis started brewing. Stocks gained 23% and gold 24% in the crisis-recovery year of 2009, and 2010 told a similar story, with stocks up 13% and gold up 30%.
Now if we look a little closer, we can actually see that this article is not what it seems. It is actually an anti-gold article. It is an MSM hit piece.
Here is the subtle evidence:
The worries have boosted prices for gold, a favorite destination for nervous investors who believe the metal will hold its value better than other assets when markets turn rocky
Gold for August delivery is up 12.1% this year to $1,288.90 a troy ounce, while the S&P has risen 9.2%. Other indicators of investor anxiety, such as the Japanese yen, Swiss franc and CBOE Volatility Index have also risen in recent weeks.
Gold outgaining stocks isn’t itself an unusual phenomenon. New York Mercantile Exchange gold futures have risen more, or fallen less, than stocks in 13 of the 27 years dating back to 1990, according to the WSJ Market Data Group.
We must stop right there because this is an important point. One of the key tactics used is cherry-picking data. Any starting point is arbitrary, and we are sure they could not go back 5,000 years to compare the S&P to gold. There is also one HUGE piece of data they ignore. Gold never changes, however, The mix of companies in the S&P change all the time. Here’s a little more from Inc:
In other words, most of the companies that were in the S&P 500 “dating back to 1990” are not in the S&P today if they even exist at all! Gold, however, is the same exact precious metal it was 5,000 years ago, and unlike seashells which can be found on the beach for free, gold has never lost value, it has only gone up in value.
Furthermore, the author makes a bold claim based on “WSJ Market Data Group”, but the WSJ might want to reconsider the market, the data, or the entire group, because, picking a point of reference, such as 1998 for example (just throw a dart), and comparing total return, gold beats the S&P 500 hands down:
We won’t even go down the gold & silver price suppression by governments and their respective treasuries, central banks, and bullion banks selling unlimited amounts of paper gold futures contracts for gold that literally and mathematically is not even available. That is for a different day. As is the equal and opposite reaction of all those entities boosting, propping, and cheer-leading of the stock markets.
Today, we are merely exposing the different ways the MSM attempts to discourage people from buying gold.
And so today, thanks to the WSJ, this might just win the prize for “Most Non-Subtle Hint of the Year”: