Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Intel Empire Fights Back with Rocket and Alder Lake! - 24th Jan 21
4 Reasons for Coronavirus 2021 Hope - 24th Jan 21
Apple M1 Chip Another Nail in Intel's Coffin - Top AI Tech Stocks 2021 - 24th Jan 21
Stock Market: Why You Should Prepare for a Jump in Volatility - 24th Jan 21
What’s next for Bitcoin Price – $56k or $16k? - 24th Jan 21
How Does Credit Repair Work? - 24th Jan 21
Silver Price 2021 Roadmap - 22nd Jan 21
Why Biden Wants to Win the Fight for $15 Federal Minimum Wage - 22nd Jan 21
Here’s Why Gold Recently Moved Up - 22nd Jan 21
US Dollar Decline creates New Sector Opportunities to Trade - 22nd Jan 21
Sandisk Extreme Micro SDXC Memory Card Read Write Speed Test Actual vs Sales Pitch - 22nd Jan 21
NHS Recommends Oximeter Oxygen Sensor Monitors for Everyone 10 Months Late! - 22nd Jan 21
DoorDash Has All the Makings of the “Next Amazon” - 22nd Jan 21
How to Survive a Silver-Gold Sucker Punch - 22nd Jan 21
2021: The Year of the Gripping Hand - 22nd Jan 21
Technology Minerals appoints ex-BP Petrochemicals CEO as Advisor - 22nd Jan 21
Gold Price Drops Amid Stimulus and Poor Data - 21st Jan 21
Protecting the Vulnerable 2021 - 21st Jan 21
How To Play The Next Stage Of The Marijuana Boom - 21st Jan 21
UK Schools Lockdown 2021 Covid Education Crisis - Home Learning Routine - 21st Jan 21
General Artificial Intelligence Was BORN in 2020! GPT-3, Deep Mind - 20th Jan 21
Bitcoin Price Crash: FCA Warning Was a Slap in the Face. But Not the Cause - 20th Jan 21
US Coronavirus Pandemic 2021 - We’re Going to Need More Than a Vaccine - 20th Jan 21
The Biggest Biotech Story Of 2021? - 20th Jan 21
Biden Bailout, Democrat Takeover to Drive Americans into Gold - 20th Jan 21
Pandemic 2020 Is Gone! Will 2021 Be Better for Gold? - 20th Jan 21
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21
Covid and Democrat Blue Wave Beats Gold - 15th Jan 21
On Regime Change, Reputations, the Markets, and Gold and Silver - 15th Jan 21
US Coronavirus Pandemic Final Catastrophe 2021 - 15th Jan 21
The World’s Next Great Onshore Oil Discovery Could Be Here - 15th Jan 21
UK Coronavirus Final Pandemic Catastrophe 2021 - 14th Jan 21
Here's Why Blind Contrarianism Investing Failed in 2020 - 14th Jan 21
US Yield Curve Relentlessly Steepens, Whilst Gold Price Builds a Handle - 14th Jan 21
NEW UK MOT Extensions or has my Car Plate Been Cloned? - 14th Jan 21
How to Save Money While Decorating Your First House - 14th Jan 21
Car Number Plate Cloned Detective Work - PY16 JXV - 14th Jan 21
Big Oil Missed This, Now It Could Be Worth Billions - 14th Jan 21
Are you a Forex trader who needs a bank account? We have the solution! - 14th Jan 21
Finetero Review – Accurate and Efficient Stock Trading Services? - 14th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold Over-Owned or Over-Reported?

Commodities / Gold and Silver 2010 Jul 07, 2010 - 12:37 PM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleHey, let's ignore the facts. Just feel the frenzy...!

DID YOU HEAR about the giant gold coin auctioned in Austria late last month?


Of course you did – courtesy of Bloomberg if not CBS, the Daily Mail, BBC, BusinessWeek, USAToday, France24, Vancouver Sun, Wall Street Journal, Financial Times, Daily Telegraph, San Fran' Chronicle, Khaleej Times or The Australian...

You could hardly kick the cat for tripping over this story. Which is more than can be said for bidders missing the auction. Not even the final buyer turned up. Madrid's Oro Direct sent a written bid instead.

"There were no counter offers," as Reuters confessed, "in an auction room packed with more journalists than potential buyers."

Still, it made good copy. Or it would have, had the story gone to plan. Because the 100-kilo gold coin – one of only five $1m Canadian Maple Leafs ever produced by the Royal Canadian Mint – sold for just melt value (€3.27m), rather than the 28% premium touted to the financial pages by the auctioneer's advisors.

But hey, let's ignore the facts. Just feel the frenzy! There's a crazy gold rush going on. Everyone agrees! Or at least, everyone in the financial media. Finance.Yahoo now quotes gold futures prices in its Market Summary box on the homepage, right alongside New York's big stock indices, crude oil contracts, and 10-year Treasury-bond yields. Reuters' homepage also features gold investment news whenever it can, putting news of a $2 rally in wholesale prices second only on Tuesday morning to the Nikkei hitting 7-month lows, and ahead of crude oil's drop to 4-week lows "on economic pessimism."

So never mind that Reuters' gold piece didn't feature in the top 10 either shared or viewed stories. No matter that – up there at the top – "Jessica Simpson" continued trending on Yahoo searches, as did Lindsay Lohan, with Bruce Willis and his new cologne now hot on her heels, and Orlando Bloom's Hugo Boss contract not far behind.

See, humanity isn't fixated on celebrity, oh no. It's been filling its boots with gold bars and coins instead...a sure sign of global financial panic and a clanging bell that the top must be in.

Gold is over-owned, not over-reported. Saturation is here! Those guys shouting "Bubble!" at the Wall Street Journal and the Sydney Morning Herald...they're smart contrarians, not jobbing hacks simply pitching for this year's "Phil Space" award. Oh sure, they didn't call gold when it hit 20-year lows a decade ago. But they can spot a bubble when they see one. Right?

"Gold investment is very visible, but expression is low," said John Levin, HSBC's head precious metals trader in London, at the FT's Silver Conference in the City last month.

On a show of hands from the audience – some 100-odd delegates – less than half owned or were invested in precious metals. And that was amongst the most qualified sample of the world's population you could wish for...an institutional precious metals conference in the City of London, heart of the world's professional bullion market.

"We're only now seeing big money accounts," he said, "true investment...portfolio allocations seeking gold and silver in a secure location, where they can just put it to bed."

"We're almost at the beginning of the real run," Levin added, inviting delegates to ask their friends, family and acquaintances just how much gold and silver they'd rushed into lately when next they met.

Put down your iPad, newspaper or TV remote, and go do the same perhaps.

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
Formerly City correspondent for The Daily Reckoning in London and a regular contributor to MoneyWeek magazine, Adrian Ash is the editor of Gold News and head of research at www.BullionVault.com , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2010

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules