{"id":37565,"date":"2013-04-15T13:19:32","date_gmt":"2013-04-15T17:19:32","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=37565"},"modified":"2013-04-15T12:20:09","modified_gmt":"2013-04-15T16:20:09","slug":"we-can-barely-stop-laughing","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/04\/15\/we-can-barely-stop-laughing\/","title":{"rendered":"We Can Barely Stop Laughing"},"content":{"rendered":"

By Bill Bonner<\/strong><\/p>\n

Whoa! On Friday, gold got whacked hard \u2013 down $63. It’s barely holding above $1,500.<\/p>\n

Is this the end for the bull market in gold? Everybody says so. From The New York Times<\/em><\/strong><\/a>:<\/p>\n

In Pocatello, Idaho, the tiny golden
\ntreasure of Jon Norstog has dwindled… A $29,000 investment that Mr.
\nNorstog made in 2011 is now worth about $17,000, a loss of 42%.<\/em><\/p>\n

“I thought if worst came to worst and
\nthe government brought down the world economy, I would still have
\nsomething that was worth something,” Mr. Norstog, 67, says of his foray
\ninto gold.<\/em><\/p>\n

Gold, pride of Croesus and store of
\nwealth since time immemorial, has turned out to be a very bad investment
\nof late. A mere two years after its price raced to a nominal high, gold
\nis sinking \u2014 fast. Its price has fallen 17% since late 2011. Wednesday
\nwas another bad day for gold: The price of bullion dropped $28, to
\n$1,558 per ounce.<\/em><\/p>\n

And this was before gold tumbled on Friday.<\/p>\n

We can barely stop laughing.<\/p>\n

This sad sack “investor” thought he would make money by putting $29,000 into gold stocks.<\/p>\n

Ha-ha. Wrong on all counts. He thought gold was an “investment”… he
\nthought an amateur speculator could make money in gold stocks… and The New York Times<\/em> thought he was an investor.<\/p>\n

And now The New York Times<\/em> thinks gold is going down. Why?<\/p>\n

Now… things are looking up for the
\neconomy and, as a result, down for gold. On top of that, concerns that
\nthe loose monetary policy at Federal Reserve might set off inflation \u2014 a
\nprospect that drove investors to gold \u2014 have so far proved to be
\nunfounded.<\/em><\/p>\n

So Wall Street is growing increasingly
\nbearish on gold, an investment that banks and others had deftly marketed
\nto the masses only a few years ago.<\/em><\/p>\n

Ha-ha. Do you remember Wall Street deftly marketing gold to the
\nmasses a few years ago? Show us the ads! Give us the brokers’ phone
\nlogs! Prove it!<\/p>\n

The fact is, the masses never got anywhere near gold. Not even close.
\nMost people have never seen a gold coin… and few are as reckless as
\nthe aforementioned Mr. Norstog. Most are even more reckless! They’ll
\nwait for gold to hit $2,000… or $3,000 before they buy.<\/p>\n

Which is why we’re nowhere close to the top. Wall Street never
\nmarketed gold deftly… or any other way. Not even in its usual greedy,
\nheavy-handed fashion. And the masses never bought it.<\/p>\n

Just the opposite. As the price of gold rose, we saw ads in the paper
\nsoliciting people to SELL gold. The masses held gold parties… in
\nwhich they sold their golden heirlooms at preposterously low prices.<\/p>\n

And those concerns that money printing by central banks<\/strong><\/a> would cause trouble that have “so far proved to be unfounded”? Well, stay tuned!<\/p>\n

The Good News About Gold<\/h3>\n

More good news from the NYT<\/em>:<\/p>\n

On Wednesday, Goldman Sachs became the
\nlatest big bank to predict further declines, forecasting that the price
\nof gold would sink to $1,390 within a year, down 11% from where it
\ntraded on Wednesday. Soci\u00e9t\u00e9 G\u00e9n\u00e9rale of France last week issued a
\nreport titled “The End of the Gold Era,” which said the price should
\nfall to $1,375 by the end of the year and could keep falling for years.<\/em><\/p>\n

Why “good news”? Because the more bearish on gold Wall Street
\nbecomes, the more the rubes and pumpkins sell. The more they sell… the
\ncheaper it is for the smart money to buy.<\/p>\n

Yes, dear reader, we hope Goldman and SocGen are right. We’d like to see gold crash down around $1,300… or lower.<\/p>\n

First, because this would mark a real correction in the bull market.
\nIt’s been going on for 12 years without a serious correction. Not a
\nhealthy situation. We’d like to get the correction out of the way…
\nshaking out the Johnnies-come-lately and the two-bit speculators. Then,
\nthe final stage in the bull market could begin.<\/p>\n

Second, because it gives us a chance to buy more. Because no matter
\nwhat noise you hear in the press or in the street, central bankers are
\nfar more reckless than Mr. Norstog. The monetary authorities are
\nconvinced that they can revive sluggish economies by printing money…
\nand they’ll continue printing until all hell breaks loose.<\/p>\n

Then, when the dust settles… when pounds, pesos, yen, euros and dollars have all been beaten and bruised… there will be one currency still standing tall. That will be gold<\/strong><\/a>.<\/p>\n

Regards,<\/p>\n

\"Bill<\/p>\n

Bill<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Bill Bonner Whoa! On Friday, gold got whacked hard \u2013 down $63. It’s barely holding above $1,500. Is this the end for the bull market in gold? Everybody says so. From The New York Times: In Pocatello, Idaho, the tiny golden treasure of Jon Norstog has dwindled… A $29,000 investment that Mr. Norstog made … <\/p>\n

Continue reading “We Can Barely Stop Laughing”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-37565","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=37565"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37565\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=37565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=37565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=37565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}