GOLD 0.51% $1,391.7 gold futures

where did this guy come from?

  1. 24,765 Posts.
    Some quotes from his article:

    "U.S. talk-radio yakkers Glenn Beck and Watergate ex-convict Gordon Liddy have become paid shills for gold vendors."

    "... the U.S. Mint has suspended sales of its popular American Eagle one-ounce gold coin for lack of supply. The Royal Canadian Mint has some of its most popular gold coins on back order.

    These are all classic "sell" signs."

    "Jon Nadler, senior analyst at Kitco Metals Inc., says gold has been riding a "bubble" of "hot air." The Montreal gold expert, noting gold's historic role as a hedge against the world going to hell in a hand basket, warns: "Don't get carried away with scenarios of Mad Max," referring to the film set in an apocalyptic future."

    "Early this month, Hu Xiaolian, a vice-governor of the People's Bank of China, was asked if the central bank would be replacing more of its greenbacks with gold after a gold purchase earlier this year. He said that was unlikely given that the bank now worries about the emergence of a gold bubble."

    "Gold, truth to tell, is a lousy investment. It pays no dividends and incurs high storage costs. It is illiquid (try paying for groceries with a gold bar). And it's in almost infinite supply."

    "Central banks and the International Monetary Fund can and do regularly sell off gold from their reserves, flooding the market. Gold producers bring uneconomic mines back into production when a rise in gold prices makes them viable again."

    "Taking inflation into account, gold should now be trading at $2,163.62 to match its previous high. Anyone who bought gold at its historic peak in 1980 is suffering a $1,313.62 loss three decades later on every ounce of gold purchased at that time."

    "Gold has increased in price by about 350 per cent since its 1999 nadir. You would have done better in that time with shares in the prosaic Potash Corp. of Saskatchewan (up 771 per cent). If you'd bought stock in Wal-Mart Stores Inc. when it went public two years before gold hit its all-time 1980 peak, you would have gained 68,109 per cent on your investment."

    The full article by Dave Olive is at

    My brief comments:

    Some of the nonsense Olive writes is beyond belief.

    Like just plucking out one stock and suggesting gold investors since 1999 should have invested in that stock rather than gold.

    The same absurd logic can be used for investors in the US dollar such as US bonds which are being thrown at us offering a negligible rate of interest in a currency that is devaluing.
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