In keeping tabs on the gold market I have set up Google Alerts for “buy gold” and “gold investing” to let me know who is talking about gold and what they are saying so I can join the conversation. If it is something out of line with my views on gold, then I will make a comment letting the author of the article know where they have it wrong.
When authors don’t post my reply, I will expose their refusal and tell people these alternative views about gold here on my blog. Someone has to expose this media bias.
Case in point, journalists from the AJC (Atlanta Journal-Constitution) and MSN Money.
Case #1 AJC “Time to Buy Gold? Too Late? by Henry Unger
Atlanta Journal-Constitution’s, The Biz Beat with Henry Unger who wrote an article, “Time to Buy Gold? Too Late?” In this article, Unger offers no journalistic integrity except to offer an article that showed gold to go over $1,000 an ounce. He then asks for others to voice their opinion about gold to which he received four comments. Well, five if you count mine, the one he didn’t post.
The question I have for Unger is what exactly did I say that wasn’t trying to help people (and you) understand what is going on with gold? Most people have no clue when it comes to understanding gold. Even most financial Advisors don’t understand it. Every time gold goes higher, CNBC brings on Dennis Gartman or some other naysayer and bashes gold.
Here is what I wrote to Unger in reply to his short article asking for opinions:
Gold is viewed as insurance against a dollar fall. It needs to be included in everyone’s portfolio. Sine the year 2000 Gold has been up year over year on a consistent basis, far out performing any other asset class. It is poised to do that again this year, yet all you hear from CNBC and others is their attempts to continually bash it. This is because they don’t understand Gold and I make that statement coming from having been a financial advisor for over 20 years. I left the industry to write about it and other economic and political issues to help investors keep and grow their wealth.
I wrote a book “Buy Gold Safely” that helps people understand gold as an investment, taking away the mystery of the yellow metal. Yes, it’s expensive, but so is making mistakes when buying gold as there are many who prey on the uneducated gold investor. Heck…nothing was taught to us about gold in our education system right?
The book can be found here: http://safelybuygold.com.
You can also read my blog where I have written articles challenging financial advisors on why they don’t recommend gold as part of a diversified portfolio to which I have not received any replies. This is quite telling to me, and should be to you. You can view one of those articles here: http://fedupbook.com/blog/inflation/challenging-financial-advisors-on-the-need-to-diversify-into-gold/
Look, most investors put a certain percentage into stocks, a certain percentage into bonds and keep a little in cash. Outside of a little bit of the stock percentage in foreign stocks, about 90% of that portfolio recommendation touted by most financial advisors today, is subject to a dollar decline (U.S. Stocks, U.S. Corporate and U.S. Government Bonds and U.S. Dollars (cash)).
This means that if that portion of your portfolio goes up 10% and the dollar falls 10%, you haven’t gained any true wealth (purchasing power wealth). This is what inflation does to you. It steals from you your wealth.
Gold stands in the way of inflation and needs to be a part of everyone’s portfolio. The late night TV shows aren’t the place to buy gold and you must be careful with the gold dealer ripping you off. Just educate yourself….
You have insurance for your car, home and life, but no insurance for your portfolio from a dollar decline…. Think about that logic for a moment…
Disclosure: I don’t sell gold. I just write about it.
Was there anything sinister in that reply? Did it explain what is going on like the author Unger asked his readers to do? Why didn’t he post it?
Case #2 What’s Wrong With Investing in Gold? by James Dlugosch
This second case is an article written by James Dlugosch from MSN Money called “What’s Wrong With Investing in Gold?” This article received more comments, but they were mostly immature attempts to discredit Dlugosch than offering anything of substance to the conversation.
Dlugosch was very adamant in this article saying there was “zero inflation” and even reiterated; “read my lips; no inflation.” While there is deflation occurring, I guess Dlugosch doesn’t have a child in college, doesn’t pay for health insurance and isn’t paying more at the pump.
Here is what I wrote to him, another comment not posted by biased media:
Yes, there’s no inflation in some areas, and in others there are. Like health insurance premiums that keep going higher, college tuition costs, oil bouncing off its lows to name a few. But we are experiencing deflation in other areas as Mish Shedlock points out.
The current move in the price of gold is a little different than last years with the dollar index breaking down to 72 and the stock market in turmoil because of the financial institution chaos. Now we have gold going up with only a fall in the dollar index to the upper 76 range mid-day today and gold breaking the $1,000 barrier intraday with a somewhat bullish stock market and not much fear. This could lead to a fall in the price of gold, but the dollar index is the key.
When the dollar index breaks below 72 again, you better be in gold. In the meantime, it can be traded for profit. Of course long term bulls hold the stuff and don’t care if gold falls to $800 on its way to $2,000 or higher.
I did write a white paper on investing in gold. It can be downloaded for free at www.fedupbook.com/whitepaper
Disclosure: I don’t sell gold. I just write about it.
I wrote this yesterday. You will notice I said in the above article that this gold bull move is different than the one last year. The stock market is still in a bullish trend and fear isn’t really prevalent like it was during last years financial crisis that was developing. But it is the dollar index that I said was key. Today the dollar index is up as I type this and gold is down $6.2 to $990.90. Again, the dollar index is the key to trading gold.
You will also notice I wrote that those who understand gold and have read my work “don’t care if gold goes down to $800 on it’s way to $2,000 and higher.”
Note: With most all of my replies to various media I put a disclosure that I’m “not trying to sell gold” to individuals and that “I just write about it.” I will continue to do so, whether the media posts my replies or not.
Doug 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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