5 votes

The reign of gold is over!

The reign of gold is over; that's what pundits would like you to believe. Whether it's on Fox News, CNN, MSNBC or the A.P., they want you to know that gold is in a bear market and you must now invest in the stock market.

I don't believe a word and this is why:

The stock market is the only thing that doesn't warn of an impending economic calamity. The market is the only thing left the government and the Federal Reserve can point to and say "See! The economy is improving!"

Meanwhile...

Real Unemployment Rate Stagnated: 11.6%
http://www.zerohedge.com/news/2013-04-05/real-march-unemploy...

Labor Force Participation Rates at 1979 Levels
http://www.zerohedge.com/news/2013-04-05/people-not-labor-fo...

U.S. Households on Food Stamps Hit Record High
http://www.zerohedge.com/news/2013-04-15/us-households-foods...

Retail Sales Declined for the First Time in Three Years
http://www.zerohedge.com/news/2013-03-13/adjusted-february-r...

Casino Spending Heading Back Towards Recession Levels
http://www.zerohedge.com/news/2013-04-09/broke-and-broker-us...

Homebuilder Confidence is Getting Lower
http://www.zerohedge.com/news/2013-04-15/homebuilder-confide...

Housing Recovery is not Sustainable
http://www.zerohedge.com/news/2013-04-11/still-think-housing...

Does this sound like a recovering economy to you? If the stock market is supposed to be the economic sign of recovery, why is everything else around it showing signs of trouble? Well this is what you get when the Fed artificially pumps up the stock market with its $85 billion of money printing per month. This monetary trick to keep the charade of economic recovery is beginning to crack. So this is where gold manipulation comes into play.

Goldman Sachs and others began telling their investors that gold is no longer worthy of buying, and to sell it...to them.
http://www.zerohedge.com/news/2013-04-10/goldman-buying-gold...

Coincidentally, it's revealed that Cyprus must sell off its gold reserves as part of the bailout.
www.zerohedge.com/news/2013-04-10/here-we-go-cyprus-sell-%E2...

Just days later, trading opened up on Friday with 3.4 million ounces of gold selling.
www.zerohedge.com/news/2013-04-10/here-we-go-cyprus-sell-%E2...

That was only the start, as it's rumored that Merrill Lynch dumped another 10 million ounces for selling just two hours later.
www.zerohedge.com/news/2013-04-10/here-we-go-cyprus-sell-%E2...

The total amount of gold that was unleashed on the market, equaled to 15% of yearly gold mining. Quite simply, there was too much gold dumped for the market to accommodate.

As long as governments continue to perpetually print money, increase its debts and overtax its citizens, gold will always be valuable. Gold will fluctuate, whether its on an organic level or being manipulated. I will say do not buy this dip in gold until it starts to rise back up. It won't be long before gold starts to post weekly increases again, but I do say refrain from buying until it hits the low.



Trending on the Web