The (GLD) Gold ETF Has Grown Into A Juggernaut

Home > The (GLD) Gold ETF Has Grown Into A Juggernaut

The (GLD) Gold ETF Has Grown Into A Juggernaut

December 14th, 2009

gold-bull “As the world’s second-largest exchange-traded fund, and sixth-largest holder of gold bullion, the (GLD) gold ETF has grown into a juggernaut. GLD’s mounting popularity among stock-market investors and speculators has made it one of the most powerful forces in the global gold markets. This ETF’s success is all the more remarkable considering it was born just 5 years ago, its rise to prominence has been meteoric. With GLD’s large and growing impact on gold prices, no trader can afford to ignore this behemoth. So it is watched with intense interest, creating a fertile breeding ground for GLD conspiracy theories to flourish. A small yet surprisingly prolific fringe of GLD opponents has done an impressive job sowing rumors and doubts about this trading vehicle. Each time I discuss GLD in my writings, I hear about these theories,” Adam Hamilton & Scott Wright Report From The Bull.

“GLD’s amazing success speaks for itself, this flagship ETF certainly doesn’t need anyone to defend it. Still, the rampant (GLD) conspiracy theories are misleading and confusing new gold investors and speculators. Some mainstream investors hear these conspiracy theories and, lacking the background to evaluate them rationally, assume they are true. This slows the migration of stock-market capital into physical gold via the conduit of GLD and dampens this gold bull’s progress for all gold investors. Conspiracy-Theorist Modus Operandi. Since there are always people who simply love trafficking in paranoia, conspiracy theories have always existed and will always exist. Whenever any institution gets large enough to single-handedly affect a given market, conspiracy theorists rush in to spin fanciful tales about it. Though true in all markets, conspiracy theorists have always had a special affinity for gold,” Hamilton and Wright Report.

“By their very nature, most conspiracy theories can’t be proven or disproven. They are all born in rumor. Conspiracy theorists create rumors out of thin air, bouncing them around in their own private circles where the theories are shaped and embellished. While most theories wither on the vine, some gain enough momentum to break out of these circles and achieve wider exposure. These rumors come to be treated as fact, held on to by their adherents with zeal comparable to that of the devout for their religion. Once rumor becomes accepted as fact, conspiracy theorists defend their belief system with all the ferocity of a mother bear guarding her cubs. Their acceptance of anyone hinges on their acceptance or rejection of their pet theory. If you advance it, they love you no matter how wrong you are about everything else. If you reject it, they hate you no matter how right you are about everything else. The theory is worshipped,” Hamilton and Wright Report.

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