In Many Financial Advisors Still Ignorant of Gold’s Place In A Diversified Portfolio Part 1, I talked about my articles challenging financial advisors on the need to diversify into gold and also about the “risk free” assets that the financial services industry relies upon in structuring portfolios. Next I delved into the Federal Reserve balance sheet and speculated on what else the Fed may be needed for in the years to come as the “lender of last resort.” Lastly, I put out a challenge in setting the tone for this article that financial advisors need to start using common sense.
In Part 2 of this article I will reveal some of the most recent discussions with a CFA who still doesn’t seem to possess basic investment common sense when it comes to the economy and gold’s history as money. These CFA’s are trained and educated enough to put up a good argument, but their reasoning falls short of reality and they never can refute the economic evidence that is in front of their noses. They instead choose to ignore this evidence and rely on the same old non-existent (today) reasoning to sell people stocks and other investments that just don’t hold water moving forward.
Keep in mind, I have been bullish on the stock market since the DOW was at 10,800 and I am still somewhat bullish today, albeit less so. But my reasoning for being bullish isn’t built on “values.” The stock market does not offer value at this point in time, and it won’t offer value for years to come. My reasoning for saying this will become evident in my exchange with the CFA’s below and on Seeking Alpha, a financial media website where I write and make comments to articles like the one below where I challenged the CFA’s.
The Gold Naysayers Have Returned In Force
Before getting into the discussion between the various CFA’s and myself, please know that the continuation of the trend of bashing gold has returned in force, and I am right there still fighting the good fight for investors. At least I’m giving them food for thought so they can make a good decision. This was what I did when I wrote; “Buy Gold and Silver Safely.” An educated investor makes less mistakes with their hard earned wealth. A biased advisor could send you to the poor house. I won’t even mention the advisors who make high commissions selling REIT’s or annuities.
Most recent articles I’ve written refuting the gold haters:
December 20, 2010
CNBC Bob Pisani’s 2011 “Gold Bubble” Prediction Nonsense
January 12, 2011
Money Magazine Joins The 2011 Gold Bubble Crowd – Deja Vu
January 15, 2011
Dave Ramsey’s Advice Not To Buy Gold Cost You 28.4% In Profit
You can rest assured I will continue to do battle with these people.
My Intellectual Battle With A CFA
The discussion I had with one particular CFA, Charles Seizmore, started with an article he wrote for Seeking Alpha. a place where I will write articles now and then, as well as debate those who write negative articles about gold, called Gold: A Bad Investment and Getting Worse Part I, written on January 18th, 2011. To view my comments, you may have to scroll down to the bottom of the comment section and hit the button that says; “Load More Comments.” Then scroll down to the following time: Jan 18 12:04 PM. There you will see the following exchange. I have made screen shots of our discussion just in case the article were to disappear.
As is typical with my conversations with these people, I get no final reply. I try simply to have a discourse that would lead to a good discussion of the issues. I stick with the facts and don’t speculate, and I make conclusions based on the data I uncover. Anyone with common sense can do the same, but sometimes they just want to ignore economic data.
The second article, written January 30, 2011, this same CFA and an additional CFA got into a debate with me over the value of gold in a portfolio. It can be found here: Is Gold’s Golden Era Over? Again, if you want to follow this conversation through the Seeking Alpha site, you can see my comments by scrolling down to the bottom of the comment section and clicking on the “Load More Comments” button and going to my first comment at Jan 30 03:59 PM. I am saving the additional CFA conversation for part 3 of this article.
There are people who rank each comment on Seeking Alpha. That is signified by the thumbs up or thumbs down for each comment that you see at the end. I guess these readers liked what I had to say compared to the CFA …based on the data.
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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