Monday, December 7, 2009
The Bloomberg Gold Indicator Flashes a Buy Signal
Bloomberg.com is one of the many mainstream sites that likes to bash Gold and spread ridiculous misinformation about Gold. This intentional propaganda serves little purpose but to confuse new Gold investors and make hard core Gold investors (including yours truly) smile as they realize another buying opportunity is at hand. Today, when I went to Bloomberg to peruse the headlines of global finance, there were three different headlines that were all Gold negative:
•Bank of Korea Sees `Illusion' in Gold, Additional Holdings Not Attractive
•Gold Can't Beat Interest-Bearing Checking Account 30 Years After Last Peak
•Gold Isn't the Best Protection Against Inflation: Matthew Lynn
Quintessential paperbug nonsense that fails to recognize the basic truth: every asset class has its day in the sun and to pretend otherwise is to expose your ignorance of financial cycles and/or let the world know that your true intention is to separate retail investors from their money. To have three Gold bashing articles in one day leads me to the obvious conclusion (excuse my cynicism): The big boyz need more Gold immediately. This is a buy signal!
If you read Bloomberg.com to get solid information on Gold, then I suspect you also believe the unemployment and inflation data coming from your federal government. I also suspect you believe that the for-profit federal reserve corporation is a part of the U.S. government and that Ben Bernanke is working hard to make sure things are good for the little guy (and gal). You likely also believe in the strong Dollar policy and believe the National Association of Realtors every month when they say that housing has bottomed (they actually started doing this a few months before the market started going down, but who's paying attention?). Why do I think these things? Because I would guess that anyone who listens to what Bloomberg.com has to say about Gold is a paperbug.
The information Bloomberg.com publishes on Gold is pure garbage. Their ignorance (versus an intentional misinformation campaign, the more nefarious and more likely option in my opinion) regarding the world's favorite shiny metal is astounding. Caveat emptor. Those who have been in the game a little longer know to look elsewhere for their Gold information. In any case, the Bloomberg.com indicator has just flashed another buy signal, confirming we are simply in a brief correction before a powerful move higher.