Wrong Again
This is a short excerpt from the most recent Delaire Report.

"And as soon as the price of gold drops, most analysts instruct their investors not to touch it as it is too high. They claim that they only buy when prices are low.

Yet, even when prices were low, they were not buying. A typical example of this is when one of the more prominent financial experts and well-known economist, Nouriel Roubini, professor of economics at the New York University’s Stern School of Business said gold was a bubble when the price was $1100 an ounce.

On Decemember 10, 2009 with gold at $1100 an ounce, Roubini said, “all the gold bugs who say gold is going to $1500, $2000, they’re speaking nonsense. Roubini went on to say, “I don’t believe in gold.”

Gold has now risen more than 60% since then. I wonder what Roubini has to say now. But believe me he is not alone in this type of thinking. In South Africa every single main stream commentator got it wrong. Yet, they have not changed their myopic views about gold and still refuse to recommend it to investors as a portfolio diversifier.

As I mentioned countless times, we live in times of tumultuous change. We do not know what is going to happen the next day. Paper assets can soar or sink as we have recently witnessed last week. Some shares dropped suddenly by more than 20%! That is like saying the price of gold has dropped overnight by $350 an ounce. Yet, as soon as the price of gold does drop, even if it is $50 an ounce, most analysts slam gold as a bad investment. This only goes to show that they have no knowledge of the global monetary system and why the price of gold continues to move higher. Through centuries of war and peace, feast and famine, gold has always been a consistent store of value and a trusted medium of exchange. Gold has an intrinsic value and has been used as money and as a store of value for more than 5000 years."

Now, the question you need to be asking yourself is how can these well-connected, well-educated financial spokespeople continue to be so wrong? The answer is simple. THEY DON"T BELEIVE WHAT THEY ARE SAYING! Every time they say "don't buy gold, it's too high," it's to keep the masses away from the precious metal, SO THAT THEY CAN CONTINUE TO BUY THEMSELVES AT THESE LOW PRICES!

I used to have a gold dealer in New York that would call and tell me everytime the Goldman Sachs boys would get their million dollar year end bonuses that they would come into his shop and take it all in gold and have it shipped out of the country. These are the same boys that are getting on CNBC and telling you that gold is a poor investment. LOL. Don't believe a word they say.