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The stupidest thing EVER written about gold...?
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TOPIC: The stupidest thing EVER written about gold...?
#22077
The stupidest thing EVER written about gold...? 1 Year, 5 Months ago Karma: 261
It's difficult to say whether the writer of this piece is utterly without shame, utterly without brains, or both. What can be said is that this is perhaps the stupidest article ever written about gold.


Here is the idiot-premise of the article:

Gold traders are the most bearish in more than a year on mounting speculation that improving economic growth from the U.S. to China will curb demand for this year’s worst-performing precious metal.



Two problems with this piece. The "facts" are the virtual opposite of reality. And the supposed "analysis" is also the virtual opposite of reality.

First of all, back in the real world; the U.S. economy is shrinking at an accelerating rate, and China is struggling (unsuccessfully) to maintain previous growth levels -- mostly because its trading partners in the West have destroyed their economies.

However, the shrinking U.S. economy will (inevitably) lead to HIGHER gold prices and MORE demand for gold. This is because it takes even MORE money-printing to keep an (insolvent) shrinking economy from imploding than to keep a growing (but insolvent) economy from imploding.

As we know, more money-printing means HIGHER bullion prices (based on the principle of currency dilution) and higher gold demand -- as the exodus out of these paper currencies (dying at an accelerating rate) increases as well.

But note that even if the OPPOSITE were true and the U.S. economy was really growing; the (permanent) 0% interest rates alone would lead to accelerating INFLATION (this time from the demand side) -- which would also lead to higher bullion prices.

This is why people on this site have often seen me observe "all roads lead to higher gold prices."



As for China, gold demand continues spiraling higher over there; but IF the economy was actually growing at an accelerating rate then Chinese gold-demand would also accelerate -- as with larger incomes (and gold prices currently restrained) the Chinese people would be buying with hands.

Thus this piece of irredeemable trash has literally gotten EVERYTHING wrong in this attempted hatchet-job of the gold market. For those with strong stomachs, here is the whole piece...





Gold Bears Braced for U.S. to China Growth Recovery: Commodities


www.bloomberg.com/news/2013-02-15/gold-b...ery-commodities.html

Gold traders are the most bearish in more than a year on mounting speculation that improving economic growth from the U.S. to China will curb demand for this year’s worst-performing precious metal.

Twenty analysts surveyed by Bloomberg this week expect prices to fall next week, while 11 were bullish and three were neutral, making the proportion of bears the highest since Dec. 30, 2011. Hedge funds cut bets on higher prices by 56 percent since October and are approaching their least bullish stance on gold since August, government data show. The metal fell to a five-month low today, and billionaire investors George Soros and Louis Moore Bacon reported yesterday that they had reduced stakes in exchange-traded products backed by gold...
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#22088
Re: The stupidest thing EVER written about gold...? 1 Year, 5 Months ago Karma: 75
Hmm...Can we think of a road that does NOT lead to higher gold prices?
agau121
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#22093
Re: The stupidest thing EVER written about gold...? 1 Year, 5 Months ago Karma: 261
agau121 wrote:
Hmm...Can we think of a road that does NOT lead to higher gold prices?


AgAu, I'm not speaking figuratively.

ALL roads lead to higher bullion prices. The only caveat to this is my warning that AFTER the major/final spike in bullion (and collapse in paper) begins that we will likely see bullion confiscation.

This is why I urge readers to focus their bullion holdings on personally held "physical metal."

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#22095
Re: The stupidest thing EVER written about gold...? 1 Year, 5 Months ago Karma: 75
So that means that it is impossible for bullion prices NOT to rise. This is another way of saying that it is impossible for fiat currency to hold its present value.

Usually when something is impossible or inevitable, it means that there are two mutually exclusive options that both share something in common, that both presuppose some other condition. For example: It will either be raining or not raining tomorrow when the sun rises locally. Both options are mutually exclusive, but both options presuppose that the sun will rise.

In the case of the statement that ALL roads lead to higher bullion prices, I'm wondering if it is possible to define the roads, i.e., possible chains of events, and what makes it a logical necessity that they all presuppose higher bullion prices. Your thoughts would be most welcome if you are willing to provide them.

I am not fully versed on the terminology related to the field of logic as I suspect you are, so please forgive me if I have misused some terminology.
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