Regular readers know that when I want to find ALL the day's gold- and silver-bashing in one convenient location I go to Kitco - where they never met a gold-basher they didn't LOVE.



So imagine how flaggergasted I was this morning to see not ONE but TWO bullish opinions on the precious metals market!!



Note that it's NOT that Kitco doesn't publish any bullish "news" on precious metals. When you have a 10+ year bull market, and the MOST bullish economic fundamentals of any commodity on the planet there is an inexhaustible list of bullish FACTS about this market. And Kitco (just like the banksters themselves) cannot IGNORE all those facts or they will even lose credibility with the SHEEP.

However what I can't recall seeing for many, many months (years?) is to see an article appear in Kitco's NEWS section which expresses bullish OPINIONS on gold and silver. As a Kitco RULE, any/every OPINION published in Kitco "news" will have a bearish slant.

In this case I think we can categorize this as "the exception that proves the rule" - and then note two points:

1) These articles were posted on SUNDAY (when the fewest people would see them).
2) They come from the Middle East - where people actually tend to UNDERSTAND the value of gold and silver...




"Silver to emerge untarnished on the heels of forerunner gold"
www.albawaba.com/business/gold-silver-prices-421883

Oh...sorry, my mistake. There wasn't TWO "bullish" opinions from Kitco (in the same day). Rather they posted the SAME article twice - but with TWO different titles. It was also published under this title:

"How long until silver breaks out of its consolidation phase and heads higher?"

Maybe one of their large gold-buying clients demanded that Kitco actually publish something SUPPORTIVE of their own clients (for a change)...???

Maybe someone is about to get fired at KITCO? LOL

rroush wrote:
Maybe someone is about to get fired at KITCO? LOL

Rroush I'm still waiting to hear what's going to come out of the CRIMINAL investigation by the government of Quebec against Kitco - arguing that Kitco was part of a multi-million dollar tax-fraud scheme.

I think IF anyone gets fired (and WHO gets fired) will likely depend a lot on the outcome of that criminal investigation...

I was hoping that someone would "take my bait" by going to Kitco and plucking one of their PRETEND-bullish articles off the site (to attempt to prove me wrong).



Well, since no one else has done so I'm going to do that MYSELF.



Have a look at this Kitco Special:

"Gold: the asset that keeps defying the pundits"

At first glance it sounds pretty bullish. But OPEN UP this piece of trash and we see something that could have been written by Jon Nadler or Jeffrey Christian - two other self-described "gold bulls".



Observe some of the subtle (and NOT so subtle) BASHING from within that takes place in this "bullish" article:

"As Warren Buffett likes to publicly declare, gold is not a productive asset because it does not generate any income."

Totally misleading.

"Even though gold bugs like to say the demand for gold is strong, the reality is the supply of bullion far outstrips demand and that is going to be the case well into the future."

An outright LIE.

"For investors to make money out of gold the "greater fool theory" must be in place."

In other words, ONLY "fools" can make money from gold (and only if there are ENOUGH of them). This isn't even subtle bashing.

"Investors flocked to the precious metal as other asset classes simply crumbled."

Another outright lie. COLLECTIVELY gold represents about 1% of total financial assets (the lowest ratio in history). INDIVIDUALLY there has NEVER been an era in Western society when so FEW people have held gold and/or silver.

"Traditionally a fear trade, gold turned into a greed trade after the GFC as the price marched higher, hypnotising old and new gold bugs."

So first you have to be a "fool" to buy gold. NOW you have to be "greedy" like a Wall Street bankster. LOL!!!

"The price peaked at $US1921 an ounce in September 2011, before entering a zigzagging pattern that leaves it clinging to the $US1600 an ounce level and the technically important 200-day moving average."

I know this doesn't SOUND that "bearish", but this is the author trying to be "enthusiastic" about the gold market. LOL!!!!!!!!!!!!!!

"While gold has been a crowded trade in recent years, it continues to hang in there to the annoyance of so-called fundamental analysts."

TWO outright lies in one sentence (lol). The first lie about "crowded trade" was just the SECOND time be bashed gold with the same lie ("Investors flocked to the precious metal..."), and I already dealt with it.

The SECOND lie is that the price of gold is DEFYING the fundamentals!!



As I write on a daily basis, gold is MORE undervalued today than it was at the BEGINNING of this 10+ year bull market - because the fundamentals get more and more BULLISH by the day.

"Gold has a history of changing bed partners on a regular basis."

Now only 'sluts' own gold...(LOL!)

"...gold has been a bed partner to declining interest rates and lower inflation."

And yet ANOTHER lie, unless there is actually a reader on this site who BELIEVES we have "low inflation".



"A look at history clearly brings you to the conclusion that no one is certain what drives the gold price, whether it be inflation, currency depreciation, liquidity or rhetoric from gold bugs."

That COLLECTION of lies is just too silly to even waste time rebutting!!!



"That leaves us grasping at thin air when trying to work out where gold heads from April 2012."

If that line isn't ALREADY as frightening as possible for people like Seb, WHO does this sleazy gold-bashing author cite when looking for the "future direction" for gold?

Two of THE premier gold-bashers on the entire planet: George ("Gold is a bubble") Soros, and Dennis ("I hate gold") Gartman. That's like recommending a pedophile to someone as a babysitter.



"Given the lack of fundamental financial reasons to own gold, there is only one sensible method to approach the precious metal at this stage in the cycle..."

This piece is TOTALLY Nadleresque. FIRST you re-hash a lie that you already introduced earlier in your BATCH of lies ("the lack of fundamental reasons to own gold") and then you USE to that lie to FRIGHTEN people - in this case by IMPLICITLY suggesting that TIME IS RUNNING OUT:

"...at this stage in the cycle..."

Now all this came out of just ONE "bullish" article on gold at Kitco. Is it any wonder that Seb (and all the other "Sebs" who DON'T post their fears here) are having problems sleeping at night?

This is not ORDINARY propaganda. This is classic disinformation because it comes at you INDIRECTLY. This isn't Jeffrey Christian in one of his gold-hating rants where he claims he's "never seen" any gold manipulation (LOL!!!).

This a Jon Nadler special: PRETEND that you really like gold, and like a starry-eyed lover you're TRYING to "find a reason to believe"...but there are just so many "reasons" to be afraid - VERY, VERY AFRAID !!!!!!!!!!!!!



For people who think that I must be making up this article, that it would be IMPOSSIBLE for anyone to cram so much lies and drivel into a SINGLE article, here is the entire POS.

Note that this did NOT get written in New York. It did NOT get written in London. It comes from Australia - arguably the most commodity-dependent planet on Earth, where we should expect MORE bullishness toward gold (and not this ultra-sleazy hatchet-job)...


"Gold: the asset that keeps defying the pundits"

www.brisbanetimes.com.au/business/gold-t...-20120422-1xewc.html

THERE is not an analyst on the face of the earth who can accurately value gold. As Warren Buffett likes to publicly declare, gold is not a productive asset because it does not generate any income. You cannot put bullion on an earnings ratio, generate a discounted cash flow model or calculate a return on the asset. Even though gold bugs like to say the demand for gold is strong, the reality is the supply of bullion far outstrips demand and that is going to be the case well into the future. For investors to make money out of gold the "greater fool theory" must be in place. This is when you are able to sell it at a higher price than you purchased it because you have found a greater fool than you. In other words, gold is on par with God, either you believe in it or not and it is impossible to prove or disprove its value.

That said, the indefatigable Buffett and his legion of cohorts have been the greater fools in recent years.

Gold is now in its 11th year of a tremendous bull market. The precious metal has risen about 530 per cent since its low of $300 in 2001. Even in Australian dollars it has managed to rise around 250 per cent. The current bull market followed a 21-year bear market in which bullion tumbled almost 65 per cent. Like all multi-year bull markets, gold begun its meteoric rise when the world had forgotten it existed and central banks were in the process of downsizing their stockpiles.

It steadily climbed throughout the decade, before skyrocketing in recent years after the great financial crises. Investors flocked to the precious metal as other asset classes simply crumbled. Traditionally a fear trade, gold turned into a greed trade after the GFC as the price marched higher, hypnotising old and new gold bugs.

The critical question now is whether the bull market is coming to a close? The price peaked at $US1921 an ounce in September 2011, before entering a zigzagging pattern that leaves it clinging to the $US1600 an ounce level and the technically important 200-day moving average. If the secular bull market is coming to a close this is not the conventional ending. Usually prolonged bull markets turn into bubbles where investors dive over each other to buy, before a meltdown takes place. In most circumstances the top of a bull market in any asset class creates a chart that resembles a Matterhorn-style peak, rather than a plateau. While gold has been a crowded trade in recent years, it continues to hang in there to the annoyance of so-called fundamental analysts. Most market participants rely on charting to price the precious metal, which means gold could move up to $US5000 an ounce and it would be plausible to say it is not overvalued.

Gold has a history of changing bed partners on a regular basis.

Since prices started to surge in 2008, the price has correlated perfectly with US Treasury Inflation Protected Securities (TIPS). The TIPS have rallied along with the overall government fixed interest market in the US and dragged gold along for the ride. In other words gold has been a bed partner to declining interest rates and lower inflation. This is contrary to the long-held belief that gold is a store of value and a pivotal hedge against inflation.

This relationship with US TIPS started to break down recently and since the end of 2011 gold has formed a strong correlation with the Euro. No one knows how long this will last. A look at history clearly brings you to the conclusion that no one is certain what drives the gold price, whether it be inflation, currency depreciation, liquidity or rhetoric from gold bugs.

That leaves us grasping at thin air when trying to work out where gold heads from April 2012. Hedge fund godfather George Soros said gold had reached bubble proportions a few years back. He was wrong. The commodity guru Dennis Gartman cleared the decks late last year, saying we are in the days of a dying bull market. He may be proven right but six months down the track there is no conclusive evidence.

Given the lack of fundamental financial reasons to own gold, there is only one sensible method to approach the precious metal at this stage in the cycle. All asset classes that experience these multi-year bull markets will endure a painful reversal at some stage. Look at oil in 2008. No matter how the story is dressed up, the price of an asset can climb for extended periods at elevated levels before mean reversion starts to kick in. This does not necessarily mean gold has reached that point, and looking at the charts there is a better than even chance the precious metal can surge again. What it does mean, though, is the end of the bull market is a lot closer than it was in 2001 and the downside potential is much greater than at any stage in the previous decade. In other words, the risk/reward equation is no longer in favour of the new buyer of the metal.

Missing the final 25 per cent of a bull market is better than sticking strong and watching your investment melt in the sun. For investors with a medium to long-term outlook the better risk equation sits with assets - such as equities and property - that have struggled.

Interestingly, companies that mine gold around the world have entered a much more severe downturn than the actual metal. In Australia, the share price of Newcrest Mining has fallen about 40 per cent over the past 12 months with its book value declining from about 1.5 times to almost one times. If gold bugs have to stay in the game, maybe a gold company rather than gold itself may be the safer play these days.

Not only is inflation low, it's almost non-existent. Don't believe me, just ask the government!

Higher prices for food? Doesn't count because food is a volatile market (and you don't need any cause we are all fat and need to go on a diet anyways)

Higher prices for gas? Doesn't count because gas is a volatile market (and you don't need any cause we are all fat and need to ride bikes anyways)

Higher prices for college education? Doesn't count because you get a loan for that and with employment improving SO VERY VERY MUCH, you'll be able to pay that back in no time once you graduate!

Higher prices for insurance? Doesn't count...

Higher prices for cars? Doesn't count because in reality the price increased less than last year.. so this is really causing inflation to go down

Higher prices for medical care? Doesn't count (if you weren't so fat you wouldn't need that medical care.. go on a diet and ride a bike to work (assuming you have a job you lazy bum), now you save money on food, gas and medical care.. win win)

Lower prices for houses? Really the market is better now.. time to buy buy buy.. (if you can get a loan from banks that aren't loaning money because they found better ways to make money.. free loans from the Fed to buy US bonds..). So many houses are being sold right now (at lower prices) that this causes inflation to be lower!

rroush wrote:


...Lower prices for houses? Really the market is better now.. time to buy buy buy.. (if you can get a loan from banks that aren't loaning money because they found better ways to make money.. free loans from the Fed to buy US bonds..). So many houses are being sold right now (at lower prices) that this causes inflation to be lower!

Can't forget to mention this. In the U.S. inflation "calculation" (i.e. manufacturing the lie) one of their favorite techniques for lying is what they call "substitution".

In other words all those INTELLIGENT U.S. consumers won't continue to beat themselves over the head by buying goods where the price is SOARING (i.e. food) - but instead they will substitute other items.

But note that this does NOT mean subsidizing a DIFFERENT food item which has NOT soared in price (try to find one!). Instead it means substituting ANYTHING for that item.

Americans can't afford to buy ground beef any longer (because of soaring meat prices)? Then they will "substitute" the vacant $150,000 condo down the street instead.



Indeed with house prices having collapsed while food prices have gone exponential, the U.S. has NEVER "substituted" so much housing into its "basket" it uses to calculate inflation as it does today.

You "can't eat gold", but according to the U.S. government you CAN "eat your house" or eat tennis balls, or anything else that is falling in price.

Obviously these U.S. inflation-calculators are not STICKLERS for "nutrition"...

Oh I know they do all kinds of neato stuff with the inflation calculation.

One of my favorites I mentioned above, saying that because car prices have gone up less this year than last year means that inflation is lower this year (actually negative inflation this year for cars LOL)

Don't forget they also use "product quality" in their calculations. So that box of cereal you bought with new packages.. that is higher quality, so the cost is reduced based on that! So that cereal may have gone up in price, but it's higher quality box means that there is no (or little) inflation on that cereal!

Remember that pound of butter you bought last year? Well this year the price is the same, but now a "pound" is 14 ounces. No inflation there either.

PS. I was actually hoping you'd have fun with my little comedy in my previous post LOL

Does this mean we should sell all our gold and silver??

rroush wrote:


Don't forget they also use "product quality" in their calculations. So that box of cereal you bought with new packages.. that is higher quality, so the cost is reduced based on that! So that cereal may have gone up in price, but it's higher quality box means that there is no (or little) inflation on that cereal!

Remember that pound of butter you bought last year? Well this year the price is the same, but now a "pound" is 14 ounces. No inflation there either.

PS. I was actually hoping you'd have fun with my little comedy in my previous post LOL

Rroush you're really "pushing my buttons" today.



The "quality" adjustment you speak of goes by the fancy name of "hedonic adjustments". And yes, it is exactly as absurd/indefensible as you describe.

And don't even get me STARTED on all the "down-sizing" of packages - the DISHONEST way that goods producers pass along HIDDEN price increases during eras of high inflation.

So let's put these two little BEAUTIES together in an example. You go to purchase your favorite box of cereal and you notice 3 things:

1) The quantity of FOOD contained has been reduced by 25%.
2) The PRICE has gone up by 25%.
3) The cereal box has a fancy new HANDLE (to make it easier for consumers to carry - lol).

So in the REAL WORLD, the combination of getting 25% less food AND paying 25% more means that (roughly speaking) the price of that box of cereal has gone up 50%.

Then the U.S.'s inflation-liars go to work. As far as I know they simply IGNORE down-sizing. Then they look at that fancy new label and they claim that this makes the cereal (by remarkable coincidence) EXACTLY 25% more valuable than it was without the handle (LOL!!!).

And so in the magical land of the U.S. "Consumer Price Index" your favorite cereal hasn't increased in price AT ALL...

Skully69er wrote:
Does this mean we should sell all our gold and silver??

I can't think of a better reply to that line than this post...




www.bullionbullscanada.com/bulletin-boar...0&start=10#17672