Are the Gold Bugs Wrong? 
Freedom's Phoenix – "Uncovering the Secrets and Exposing the Lies"
 

Gold: $1216.20  Change: $3.10
Silver: $17.24  Change: $0.06
  http://www.constitutionalcountyproject.org/about-us  
Current Bitcoin
Price:
$383.73

Provided by
BitPay.com
 
Contribute Bitcoin to
Freedom's Phoenix



Contribute Funding by
PayPal or Credit Card

 
Sign-up for FREE
Daily Newsletter
Log-In

See Complete Menu

Special Editions
Translate Page
RSS Feeds
 


Declare Your
Independence

with Ernest Hancock

 
Log-In
Front Page
Page Two
 
 

Freedom's Phoenix
Online Magazine

 
Freedom Forum
Letters to the Editor
Report The News
 

Anarchives:

 

 

Search by Keyword

    Contents by Subject
    Radio/TV Shows
    Feature Articles
    Opinion Columns
    News Stories
    Newsletters List
    Reference Links
 
 

Julia Tourianski - Brave The World - Videos
 
Quantum Vibe
 
Agorist Marketplace
 

Are the Gold Bugs Wrong?

Are the Gold Bugs Wrong?


Written by
Jeff Clark
Date: 06-13-2013
Subject: Casey Research Articles

What a ride the precious metals have been on recently. Gold and silver prices have fallen off a cliff, while gold stocks were thrown on the rocks and left for dead. GLD has seen record outflows.

Popular financial news shows featured guest after guest who proclaimed gold is now "officially" in a bear market, emboldened by the fact that in spite of its recent bounce, the price has languished below its September 2011 peak for 20 months. As a group, gold stocks are down an abysmal 54% over that same period. The capitulation process has been brutal.

So, were we wrong? Is it time to admit defeat, sell our positions, slink into a cave, and lick our wounds?

Absolutely not.

The only thing that changed over the past 60 days was the price of gold, and perhaps the mainstream's perception of our industry. The realities of the fiscal and monetary state of the world, however, did not.

What has struck our industry was not the consequence of a shift in fundamentals, but rather a number of transient factors, including: (i) growing belief in the general investment community that inflation will not result from global money-printing efforts; (ii) claims the global economy is improving; (iii) Europeans fleeing their economic troubles buying US dollars (which makes the dollar look strong and hence gold less appealing to some); and (iv) a very large gold sale that caused the gold price to breach "technical support levels" and trigger a cascade of further selling. All of this – and a lot of commentary based more on opinion than fact – has led to the misguided conclusion that gold is a has-been asset.

Casey Research readers know we think inflation is inevitable, but even if deflation were more likely, it is the fallout from a world living beyond its means in which most major central banks are massively debasing their currencies in an attempt to prop up ailing economies that worries me.

These stimulus policies are unprecedented in scale, entirely unsustainable, and induce financial-system instability. And somehow, it is widely believed that the same policymakers who concocted this mess can get us out of it. Our views haven't changed – yet suddenly, we're contrarians again.

It takes patience and courage to stay the course amid a groundswell of proclamations that the "gold trade is dead," but our positive outlook isn't based on stubbornness. The evidence from history is very clear: you cannot solve debt problems with more debt, nor strengthen an economy by destroying your currency. Eventually, these sins catch up to you.

Today's ongoing economic and fiscal crises cannot end smoothly or without unpleasant consequences. Since none of the excesses that precipitated the 2008 financial crisis have been fixed, another round of crisis is baked in the cake and will likely inflict even greater damage. When that happens, gold will again be seen as the refuge it is, regardless of current popular opinion.

We're not alone in this thinking. As you've undoubtedly read, in response to the crash, global demand for physical metal soared at both the retail and wholesale levels. This reaction is extremely important: we can't identify a single crash, collapse, or crisis that ended with retail investors stampeding to buy the asset that had just been crushed. Not one.

In our view, the gold story is not over. Far from it. The reasons for owning it are just as important now as they've ever been since the bull market started in 2001. I can't be sure the price is done falling – but I'm sure it's not done climbing.

What is going on with gold? Was it overvalued before the recent drop? Or is the price being manipulated? Is now the time to get in, and if so, how? These are just a few of the questions investors want answered. And while no one has a crystal ball that issues definitive answers, some people have been around long enough to have keen insights on what's happening and what's likely to happen from here.

People like Doug Casey, legendary speculative investor... Eric Sprott, founder and chairman of Sprott Inc... and Steve Feldman, former Goldman Sachs partner and cofounder of Gold Bullion International. Casey Research and TheStreet have teamed up to bring these great minds together, along with others, to discuss the questions asked above, and many more. You can hear their answers – and more important, get their actionable advice on what to do now to best position yourself for what's ahead with gold – in an exclusive video event titled Gold: Dead Cat or Raging Bull? The webinar will be held Tuesday, June 25 at 2:00 p.m. EDT. Reserve your spot now.


Send Letter to Editor

Join us on our
Social Networks

Share this page with your friends
on your favorite social network:

     
Additional related items you might find interesting:
Feature Article  •  More about Casey Research Articles
The Single Most Important Lesson from the Casey Summit
Louis James
Feature Article  •  More about Casey Research Articles
Don't Be a Freedom Wimp: Live from the Casey Research Summit in San Antonio
Doug Hornig
Feature Article  •  More about Casey Research Articles
Home Healthcare Cuts Threaten 500,000 Jobs and Put Female-Owned Businesses at Risk
Dennis Miller
      Attorney For Freedom  
 
  Magazine / Newspaper
   Magazine Subscription Info
   Online Magazine List
   Newspaper Subscription Info
   Newspaper Issue List
 
RSS Feeds
   Articles RSS Feed
   Opinions RSS Feed
   Media RSS Feed
   Newsletter RSS Feed
   Smartphone Feed
   Podcast Feed
Radio / TV
   Declare Your Independence
      with Ernest Hancock

Anarchives
   Search by Keyword
   Contents Listed by Subject
   Radio / TV Show Archives
   Newsletter Archives
   News Links
   Feature Articles
   Opinion Columns
   Reference Links

 
Letters to the Editor
   List of Letters
   Write a Letter

 
Join Us
   Subscribe to Magazine
   Membership Sign-Up
   Be a Writer
   Be a Reporter
   Link to Us

 
Marketplace
   Buy Stuff – Sell Stuff

   Store on CafePress.com
More News
   Page Two
   Current News
 
Discussions
   Freedom Forum
 
Advertise
   Intro to Advertising with Us
   Magazine Advertising Rates
   Radio Advertising Rates
   Website Advertising Rates
 
Funding Center
   Support or Promote a Project
About Freedom's Phoenix
   About Us
   Contact Us
   Terms of Use
   Privacy Policy
   Writers List

 
Tutorials – Using This Site
   List of Tutorials
 
Media Resources
   News References
   Blog References
   Government References
 
  FreedomsPhoenix.com
The domain and name of this website are servicemarks of Ernest Hancock.
Website is Copyright © 2014 by Ernest Hancock.  All rights reserved worldwide.
Feature articles, columns, illustrations, and photographs are copyrighted and may not be
reproduced without the expressed permission of the credited writer, artist, or photographer.
No portion of this website, text, images, or source code may be framed on another website,
copied, reproduced, or distributed, by any means, without the written permission of
Ernest Hancock, 4886 W Port Au Prince Ln, Glendale, AZ 85306 USA.
Website Designed by
USA Web
Advertising

Phoenix, Arizona
 
Time to display page: 0.715 Seconds -- Dynamic Page

Page Views:

free web stats

Stats by StatCounter