- the end of gold - , page-12

None of these analysts can be taken seriously at this time of global turmoil. There are so many different views out there each supported by their own slant on things and they all cant be right. Eventually if things pan out the way someone appeared to say it would it would likely simply be by accident.

I listened to a debate on last night by a number of US economics gurus and by the time they had finished you had no idea of the likely direction of the economy. They were all over the place. These guys make their money by writing articles and whether it turns out the way they say doesn't matter. If they are wrong they write another lot of gobbledygook so the focus is on that, rather than what they previously wrote. IMO Bailey, the writer of the "end of gold" article makes some ridiculous illustrations to back his contentions about gold. He refers to students who cant get credit etc and therefore they wont be able to invest in physical gold. A very poor illustration in my book.

What particularly alarms me about the article is his recommendation to short gold. Shorting in itself could become the catalyst for volatility in the gold price and can distort its true value. We have seen what shorting has done to the equity markets.

Just my two bobs worth. Disclosure: I have GOLD.

cheers
eagle