Ignore The Gold Price Hype

WHAT OTHERS ARE THINKING

Another day and another person is talking up the price of precious metals on the internet. What’s this? The imminent rise of gold to $5,000 and silver beyond $100!

That might not be beyond the realms of possibility. But the issue here is that the internet gives everyone a voice. Blogs and social media sites like YouTube are increasingly popular platforms on which anyone can express an opinion. The challenge for readers and viewers is to sift out the downright nonsensical.

Respected gold analyst John Nadler nails the point in his recent commentary when he says “...the Internet has now made it possible for practically everyone to be heard, whether or not they have something of value to offer, or are just possibly hiding a self-serving commercial agenda behind putatively erudite "opinion".

John urges level-headed caution, which is to be found in spades in an article he talks about from the UK’s The Telegraph website. There is a danger that people are buying gold now when prices are overheated, according to two financial planners it quotes.

(The thought occurs that financial planners have interests to push too - have you watched Can Your Financial Advisor Spell 'Gold'? on our YouTube Channel yet?)

Anyway, John sensibly advocates we might do well to filter out some of the current internet hype about rising gold and silver prices and instead “stick with the prudent, time-tested, core, ten percent gold “just-in-case” insurance position… price explosions or implosions of the future notwithstanding.”

Stephen Ward

The Perth Mint Blog