On any given day, you can search for the term “gold”, and find yourself
deluged with a hundred thousand results. Invariably, the top-placed headlines
in a news search consist entirely of mainstream news sources such as
Bloomberg, the Wall Street Journal, the New York Times, Financial Times,
Reuters, etc. When the topic searched for is ‘gold’, its no wonder the
average individual on the street thinks the gold bull run is over.
For example, Bloomberg this morning trumpets “Gold Bull Run Seen Over as
Bear Drop Frays Faithful”. How much further from reality can an ostensibly
respectable and unbiased news reporting source get? As demonstrated clearly
by the record sales in gold coins and bars in India, China, and the United
States in the last quarter, the paper attack on gold in the futures market
has had exactly the opposite effect to “fraying the faithful” – it has caused
a stampede of buyers into the physical metal.
Bloomberg’s piece goes on with pure fiction:
“Investors are selling bullion held through exchange-traded products at the
fastest pace on record, hedge funds accumulated their second-biggest bearish
bet ever and futures had their biggest two-day drop in 33 years last month.”
Investors selling ETF positions are not selling bullion – they’re selling
ETF’s, which are paper representations of a fixed quantity of gold, which may
exist as bullion, or may simply itself be represented by by a futures
contract to buy gold at a fixed price at a future date. But that contract can
be rolled over, or settled for cash. Its no more representative of a sale of
bullion than is a Willy Wonka chocolate bar.
And from Reuters UK:
“Recent signs that Fed officials appeared to be nearing a decision to start
winding down their bond purchases to end stimulus contributed to the negative
tone for gold, even though inflation has failed to materialize as feared
during its rounds of post-financial crisis quantitative easing.”
While there have been reports of opposition to further quantitative easing
by certain Fed governors, the reality is that any wind-down of the $85
billion ‘asset purchase’ program by the Fed would immediately be accompanied
by a stock market swoon that have brokers having heart attacks and jumping
out of windows.
Again, mis-reporting by the mainstream financial press is biased
negatively toward gold. If it was objective reporting, questions surrounding
the death of the gold bull market would be offset by questions as to what
could possibly slow the bull market down, given that all of the
macro-economic factors that catalyzed the bull market in the first place are
not only still present but amplified. Currency debasement, sovereign debt,
economic uncertainty, geo-political instability – all of these contributors
to pro-gold fundamentals have only intensified in the decade since the gold
bull got up a head of steam.
At the end of the day, the discerning reader must conclude that the
mainstream financial press is not an unbiased reporter of facts, but a
collusive partner with the AMSCAM (American Syndicate of Collusion and
Manipulation) syndicate of banks, Treasury Department, Fed, CFTC, etc.
