Jeff Nielson: As a life-long Contrarian; these days I spend the vast majority of my reading/research time studying the bearish drivel on precious metals which emanates (in greater quantities than ever) from the Corporate Media. Indeed, this propaganda machine never displayed as much zeal to cover the gold market during the last twelve years of rising prices as it has this year – now that it has absurdly proclaimed a “bear market” for gold.
Why choose to study drivel?
Because (as any Contrarian can tell you) you always obtain the strongest arguments/evidence to support your own position from those with the opposite perspective. The logic here is simple enough. Assuming one’s own position is valid, then those with the opposite perspective are advancing false arguments.
At this point, it simply becomes a matter of carefully watching/listening, as your opponent(s) inevitably exposes their own weakness(es). With the Gold Bears never having had as much to say as they have lately; Contrarians have never been gifted with so many strong arguments as to why we should all be buying gold (and silver).
As the loudest of the Gold Bears, let’s let Bloomberg do the talking today, in an article titledGold Bears Dominant Again as U.S. Growth Quickens:
…“Why would I want to hold gold if the U.S. economy is recovering and equities are doing so well?” said Andrey Kryuchenkov, a commodity strategist in London at VTB Capital, a unit of Russia’s second-largest lender. “Physical buying probably won’t be enough to revive the gold market and have a sustained rebound. The sentiment will still remain bearish.”
Let me bite-off the the first chunk of this Big Lie: the U.S. economy is “recovering” and “equities are doing so well.” As all regular readers know, there is no bigger lie than that of the mythical “U.S. recovery”. As we get more B.S. from the BLS today proclaiming another 160,000 “new jobs” in the U.S.; back in the real world the U.S. has been losing jobs at the fastest rate in history throughout this “recovery”:
Then we get to the second half of that Big Lie: “equities are doing so well.” Indeed, with the Federal Reserve pumping $85 billion per month of its funny-money into the greedy maw of the One Bank solely to pump-up market valuations, one would hope they are getting a little “bang for their buck” ($1 TRILLION per year, to be precise).
So with a fake-recovery in the U.S. and $1 trillion per year (of new, funny-money) pumping-up U.S. equities to record levels, what do we have? That’s right: yet another U.S. market-bubble.
What happens next? For the answer to that question, we need only refer to that Monetary Oracle, Benjamin Shalom Bernanke, when he proclaimed the U.S. “a Goldilocks economy” in 2007. Chairman Ben told us that U.S. markets, and U.S. home prices, and the U.S. economy itself would just keep going up and up forever. Of course that’s not exactly how things turned out, is it?