Expert Market Analysts Talk Gold Garbage

February 27, 2009 | By | Reply More

What a load of garbage about gold is being tossed about in the media by so called expert market analysts in these days of looming financial Armageddon.

For example we read that the Swiss based bank, UBS AG, hardly a shining light in the banking sector with colossal losses and under fire in the US for not disclosing details of account holders some of whom, god forbid, may actually be tax evaders, tells us that “parts of the gold market are in a decidedly weak position” and as evidence cites the complete absence of jewelry demand and that refineries are full and busy converting scrap.

Dealing with the first statement, a leading Indian newspaper, where the gold jewelry market is at its strongest, reported on Tuesday that buyers were coming back into the market.

Last week it reported that Indians were selling off their damaged and scrap gold jewelry when the price was near the $1000 an ounce range and the rupee was faring poorly in the currency markets.

At the same time the largest US buyer of gold from the general public are bending over backwards to persuade cash strapped citizens to sell them their precious metals bits and bobs, expecting the price to quickly climb to $1200-$1400 an ounce.

Can anybody seriously think that this quantity of scrap Indian gold is going to fill the refineries!

It won’t even leave India so where is all this scrap coming from? No explanation given and the idiocy is then compounded when the world’s largest gold backed ETF, the SPDR Gold Trust (GLD) has just reached a record holding of 1029.29 tons, taking advantage of the spot price dip to buy just under a third of a ton this week.

ETFs are now the sixth largest worldwide holders of physical gold ahead of Switzerland.

Then we have Goldman Sachs, JPMorgan and others of the same ilk, doing an impression of why a strong dollar is bringing down the price of gold.

Hold on a minute, a strong dollar for how long?

A strong dollar against the Euro, Sterling and other rubbish currencies that are in the mire as deeply as the US!

Surely these conscientious guardians of the veracity of the US banking system would not stoop to do the dirty work of their past executive colleagues now employed by the government by undermining gold and silver as safe haven assets in the expectation that government bonds will benefit from the change in investment flow.

Why even the oil producers might then regain some confidence in the dollar!

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