Price of Gold and the Media

I not sure what others think but I see a direct correlation between what is said on MSNBC and what follows in regards to comments made. Late tuesday there was guest on MSNBC making negative comments about the ownership of gold. The time given for his comments was lengthy and not just a brief discussion.

Long story short, this guest said there was no room for gold to move higher and he was getting out of his position 100%. So today the price is down, last I checked, between $90.00 - $100.00.

Coincidence or manipulation by someone with a bet that against it? Would like to hear opinions.

 

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While I would never put it past a large player in the market to use the media for his own gain, gold is a tough market to do that to. Silver would be more believable, but gold is simply too widely held and not nearly as manipulatible as others things, like silver or a smaller company's stock.

I would assume coincidence unless more correlations could be shown. Its not like the markets were quiet, there are large things happening with the Euro, dollar, and international markets, and gold usually loses on dollar strength.

Chris

 

CNBC has been a consistent gold-basher for a decade, and they have had many guests on over the years who have proclaimed the end of the gold bull market or who have laughed at those who purchased gold. It's too bad nobody comes on the network and exposes the fact that anyone who has followed their advice has missed out on one of the best profit making opportunities so far this century. But if they did that, chances are they would never be invited back.

 

NBC, MSNBC, CNBC, and their other derivatives all carry water for the status quo. General Electric, their primary owner until this past year, is the one of the biggest beneficiaries of federal spending (defense contracts), backstopping of GE Credit (Tarp and others) and they don't pay any income tax. Of course their networks are going to be biased towards paper and against gold because this is what the status quo wants.

I don't hold any of the other major networks in the USA as better examples but the bias at NBC is pretty blatant.

My advice, turn them off. You won't learn anything relevant on these stations now.

 

I have also noticed that on days where gold drops significantly on North American markets it usually rebounds on the other side of the world. I would like to do some more research on the percentage of times gold goes up overseas when there is a bad day in North American markets. I am sure that someone has this information but I wouldn't know where to begin to find it.

 

Well it's obvious there's alot of panic selling going on but you can also see that as an opportunity to buy gold as well. The US is not doing well economically speaking and either is many other countries. The Euro-Zone economics is the focus and rigamarolle for all this panic selling nonsense. Time to buy is the way I sees it.

 

i can see gold coming down to $1400 and Silver down to $20 in coming month due to panic selling.

 

Personally I could see $1400 gold, but $20 silver would be too much of a correction. Even though I am fine with my quantity owned I would seriously look at buying at $20 silver.

 

I think problem with Silver is that it is industrial metal making it even more vulnerable to any sell off.

 

Could be, but cost of production would actually go UP if there was an overall selloff of industrial metals like copper. If this happened, I don't think with today's oil prices it would be sustainable and I think it may be an opportunity to profit. The scenario I could see sivle breech $20 would be continued strong demand for copper and gold, and simply less demand for silver. While maybe not LONG term sustainable, this could be sustainable for a few years at least, even with current oil prices.

Don't worry Inflexion, I am not predicting this, just saying its a possible scenario.

Chris

 

I wouldn't advise turning them off. These folks [CNBC, Kramer and the like] are your investment opponents, and it is useful to know what they say and how they think even if you never follow any of their advice.

 

But this demand is coming mainly from China there are indications of slow down there, which will drive down overall cost of commodity?

 

Jim Cramer is on, reiterated a sell sell for equities and said you can stick with Gold which will rebound like it did after collapse of Lehman.

 

Dear God YES. Is there a worse media outlet ?

It's not a USA thing, that's for sure. ALL media outlets are biased worldwide; the key is to detect their agenda and read accordingly. BBC, Le Monde, Il Corriera della Sera, Der Spiegel... read them all, trust none.

For some real laughs, try IRNA (Tehran). And don't forget those zany, wacky, devil-may-care guys at Al Jazeera. Hilarious, these guys !

 

Very true. I try to keep up with Al Jazeera just to remind myself how that area of the world thinks.

For some really terrific, (horrific), laughs, don't forget the US' very own NPR. Some days I think they are just making this up for a laugh track!

 

when I want a good bellylaugh I tune into Fox and friends.

 

I'm wondering where people see panic selling of gold. If you watch the volume each tick during the day, such as every 2 minutes on my chart, you dont see many spikes, it is many fewer bids than offers, so the price drops. They are going to safety, cash, or a USD/Euro trade. The volume of GLD was only about 2.5x average volume, unfortunately most was selling pressure. Bullion is great for traders and accumulators when the trend is upward, but when it starts to decay, watch your nuggets I am shorting the Euro through EUO , and holding the gold, as I see less hope in the Euro zone. I think the limit of the USD as a safe haven is around 83-85, so until then, I suspect, commodities will be subject to more drop. But I still see no manipulation in PM, just little interest overall. By the way GE might be a good stock to hold for the next few months as it is fairly safe and has a 3.6% dividend. IMO. Go with the flow.

 

Hehe thx for the chuckle Chris. As long as silver is not in a supply squeeze, and as long as the futures market is intact I would not be surprised by $20 silver actually. However if and when either of those factors change, silver will be considered to have been the best play around IMO. For the record I bought the dip today and picked up some 2011 African Elephants


As to the OP, whatever the MSM says is pretty much the opposite of what I would consider sound advice. They said to buy when it was over 1800, you couldn't avoid the media blitz. Now they are saying sell since it's under 1600. Anybody who bought when they said to, and sold when they said to would be losing money. Sure somebody predicted this drop, but it wasn't hard to see it coming with the obvious need for liquidity in Europe after the Fed was firm about not bailing them out and not doing QE3 (yet) in their FOMC meeting yesterday. Maybe it's easy for me to say that in hindsight, but nonetheless, I don't pay any mind to the talking heads except to see what direction they are steering the lemmings.

 

Bring it on! Get all the short term investors out, and let the price come back into average Joe's price range!

 

When the average Joe starts buying gold instead of selling it at the Cash4Gold places, then you will know the endgame is here.

Admittedly I do like the days, not that long ago it seems, when you could score an AGE for less than $300.