Friday, 25 October 2013

The gold propaganda machine - playing on the weakness of the masses?

Gold is a classic topic for conspiracy economics - it has it all.  Big government, shady deals, smuggling, mines in dangerous places, gold standards, money, quantitative easing - it has it all.

My concern is that a large number of  blogs and commentators (not unlike this one.....) are pushing the story that gold and silver and massively undervalued and that revolution is  coming, the dollar will collapse and the only solution is to bury a few bars for gold in the back garden (as the government might steal it lest it is kept in the house or in a bank vault).

One thing that I have noticed about a lot of these scare sites (a lot are listed in the blogroll of this blog) are then peppered with "buy gold here" adverts from which they will of course make a cut. 

Thinking about it, watch out for a gold buying advert on this site soon.

A lot of the scare/conspiracy stories are of course just that.  Armstrong economics take a swipe at the gold bulls.  His site is devoid of gold adverts (like this one ..... for now)

Is QE fundamentally undermining the dollar?  Are competitive devaluations going to lead to high inflation and higher interest rates?  Perhaps and perhaps gold is a good investment (physical and not paper of course....).

It is always wise to look at both sides and Armstrong provides a good rant on the subject.

The whole article is worth reading but he concludes:

Gold & Perpetual Propaganda [Armstrong economics]

[...]

Are you trying to survive and make money? Or are you just spreading propaganda that is created by gold promoters to get people into a zealot state that they will continue to buy even when they lose money? Gold is a market and it rises and falls like everything else. It is trading NO DIFFERENT from the rest of the commodity sector. Everything is linked and everything has its cycle and time. Why should gold rally when the MAJORITY of people see nothing wrong? Until the majority of people question government, which is coming, then and only then will gold rally on a sustainable basis. It did not even exceed the 1980 high adjusted with the bogus CPI numbers that stand at $2300 today. When gold exceeds that number – THEN AND ONLY THEN is real bull market underway.

If you stop fighting the trend and embrace how markets trade, what is so wrong with waiting to buy the low? You just may make more money that way than donating to those spreading propaganda for their own self-interest. How can someone be an analyst when his livelihood depends upon selling you that which he claims to be an independent analyst?


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