Why is gold the hot market, and why is the public missing it?
*Dow Theory Letters, Richard Russell, January 3, 2006:
"Aside from oil, gold is where the action is. The high close for
Feb. gold was struck on December 12 at 531.50. I'm writing this prior
to the close, but Feb. gold is up 11.50 at 530.30 as I write. There
seems to be an almost built-in skepticism towards gold, no matter where
it goes. If gold advances, it's the "speculators" manipulating the
metal higher" If gold declines, "gold is just a commodity, and
commodities are dangerously tricky and volatile."
As far as I'm concerned, the more skepticism, the better. The public is
either ignorant or oblivious of the entire gold bull market. The pros
and a few mutual funds may buy a little gold "because it may go
higher." As for the fundamentals of gold, the pros are as clueless as
the crowd. Two generations of brain-washing and shameful propaganda by
the central banks of the world has worked to keep the public totally
ignorant of the concept of money.
I read over and over that "there's no inflation, so gold has no real
reason to rise." Gold isn't rising on the US inflation statistics. Get
real -- gold is rising because the central banks of the world are
destroying what's left of paper money. "Competitive devaluations" is
the name of the game.
And another thing -- didn't Alan Greenspan claim that the Fed acts just
as if our dollars were still backed by gold? Sure he did. If the
Chairman of the Federal Reserve can, with a straight face, hand out
that kind of bullshit, how can we expect the citizens of this great
country to understand anything about the money they work so hard for?"
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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