Jun 10
15
Bill Murphy and Jim Sinclair have done more to keep me on the right side of gold since just above $300. I truly can’t do without either one’s commentaries.
This is from Bill’s daily letter today:
The gold industry is truly daffy. Not a week goes by when a number in this industry fail to give credence to my decade long statement: Never have so many known so little about their own industry. It is truly astounding and NEVER changes as the years go by…
*The World Gold Council promoted jewelry consumption until very recently as its main focus … even as gold has been in a ten year bull market and the most consistent investment around.
*The senior gold producers finance the World Gold Council even though this outfit has done little to deal with the real issues affecting the gold price. As a rule producers are afraid of going with the GATA line because of fear of losing mining permits and financing by the bullion banks … those same bullion banks which encouraged that they hedge below $300 an ounce … those same bullion banks (like Goldman Sachs and JP Morgan Chase) who made HUGE fees for the transactions they concocted. The reason for a WGC is to have them do the infighting for the producers. Instead, the WGC just lets The Gold Cartel do whatever they want and says nothing … and the producers remain compliant.
*The WGC has an alliance with GFMS, the industry stat group, which is usually neutral to bearish. For the most part they have missed the move all the way up and constantly understated demand, refusing to deal with the gold flow used to suppress the price. GFMS’s latest is a joint promotion with Société Generale which is looking for $800 gold by the end of the year. They deserve each other.
*The mainstream gold world analysts have been neutral to bearish on the price of gold most of the way up … and still are. The mainstream financial market press never calls them on it and asks them how they could have got it so wrong. Barclays is calling for gold to drop to $800 by the end of this year. JP Morgan is looking for $950 gold in the years ahead. When they are proved wrong AGAIN, the financial market press will continue to give them all passes and then ask for their next predictions.
*Just as confounding are the commentaries from some of the bullion dealers. Nitwit Nadler comes to mind. He has been wrong most of the way up too and has one of the worst predicative commentaries in the history of markets (Prechter gives him a run for his money on gold). Is the guy that dumb or is he talking his book … perhaps like other dealers which have sold unallocated over and over via their gold ponzi schemes?
Any of you that glance at Kitco, know that The Nitwit scours the net looking for the gold bears and their commentary. He found another bullion dealer yesterday who is as clueless as he is…
Interview: Gold is Not a Currency, Will Face Pressure When Global Economy Improves–Miguel Perez-Santalla
http://www.kitco.com/reports/article_template_20100614a.html
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Heraeus is a globally active precious metals and technology Group with firm roots in Germany, headquartered in Hanau near Frankfurt. The company has been family-owned for more than 155 years. Precious metals, sensors, biomaterials and medical products, dental products, quartz glass, and specialty light sources are the focus of our activities.
Heraeus currently holds more than 5,500 patents. Over 350 R&D employees in 25 development centers around the world fuel our innovative engines. In 2009, Heraeus generated more than € 2.6 billion in product revenue and €13.6 billion in precious metals trading revenue with more than 12,300 employees in over 110 subsidiaries…
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That was yesterday. Today he found another of his ilk and was only too happy to bring it to the attention of his followers…
Gold `Out of Whack’ With Commodities, Due to Fall: Chart of Day
Gold is “way out of whack with commodity prices” and headed for a fall, according to Brian Belski, Oppenheimer & Co.’s chief investment strategist.
The CHART OF THE DAY displays the ratio between gold’s price for immediate delivery, determined in the so-called spot market, and the Commodity Research Bureau’s spot commodity index on a monthly basis. The latter consists mainly of scrap metals, textiles, livestock and farm products.
This month’s reading of 2.93 is the second highest since 1981, as shown in the chart. The highest was 3.03 in February 2009, when spot gold ended a four-month advance by trading at more than $1,000 an ounce.
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Belski’s line of thinking is not uncommon and helps to reflect on why there is so little excitement over gold at the moment in the investing world, which is partly why the share prices of many of the junior/exploration stocks can’t get out of their own way.
They continue to listen to the likes of he and The Nitwit. Nitwit’s commentary today…
Projections for all kinds of stratospheric gold prices continue to be on offer practically every day, usually tendered by starry-eyed fund managers and a few traditionally media-visible mining company CEOs. Almost all such visions are based on the debt crisis spiraling out of control, taking over the entire planet, and sinking paper currencies all over the place. Almost all such scenarios are also based on rampant inflation, social dislocation and turmoil and no alternatives left for asset allocation. Almost all such predictions are relying on central banks becoming completely impotent and behind the curve in dealing with current and future conditions.
Market fundamentals have largely been placed on the back-burner, certainly over recent time periods. Dependency on investment has become the order of the day. Buying more than might be advisable has become fashionable based on assumptions of more of the same in price patterns. If this all sounds familiar to those who have been through the 80s, 90s and the first half of the 00’s – it is. There are however, some market metrics which have more than a few observers up at night, pondering what trace the ten year-old curve in the gold price might draw next, now that it has indeed become basically a vertical one and shows signs of possibly coming to a point of resolution in either direction.
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Actually, I think The Nitwit is that dumb AND is talking Kitco’s book.
The GATA camp has been correct for the past decade, and he has been wrong, because we know the real gold supply/demand situation thanks to our understanding of the gold price suppression scheme. He constantly speaks as if the fundamentals are bearish and only hysterical hype is moving up the price, when nothing could be further from the truth. And both he and Belski make the same COMMON mistake. They are looking for normalcy to return to the markets, when anything but normalcy is on the horizon … at a time when the central banks are huffing and puffing to come up with enough gold to meet the steady supply/demand deficit.
Oh well, it’s wonderful having the likes of The Nitwit around for comic relief. He really is like Bagdad Bob. You can count on him to be saying the same thing even as gold approaches $2,000 per ounce.
