Mainstream Financial Press Continues Campaign of Gold Disinformation

James West

On any given day, you can search for the term “gold”, and find yourself deluged with a hundred thousand results. Invariably, the top-placed headlines in a news search consist entirely of mainstream news sources such as Bloomberg, the Wall Street Journal, the New York Times, Financial Times, Reuters, etc. When the topic searched for is ‘gold’, its no wonder the average individual on the street thinks the gold bull run is over.

For example, Bloomberg this morning trumpets “Gold Bull Run Seen Over as Bear Drop Frays Faithful”. How much further from reality can an ostensibly respectable and unbiased news reporting source get? As demonstrated clearly by the record sales in gold coins and bars in India, China, and the United States in the last quarter, the paper attack on gold in the futures market has had exactly the opposite effect to “fraying the faithful” – it has caused a stampede of buyers into the physical metal.

Bloomberg’s piece goes on with pure fiction:
“Investors are selling bullion held through exchange-traded products at the fastest pace on record, hedge funds accumulated their second-biggest bearish bet ever and futures had their biggest two-day drop in 33 years last month.”

Investors selling ETF positions are not selling bullion – they’re selling ETF’s, which are paper representations of a fixed quantity of gold, which may exist as bullion, or may simply itself be represented by by a futures contract to buy gold at a fixed price at a future date. But that contract can be rolled over, or settled for cash. Its no more representative of a sale of bullion than is a Willy Wonka chocolate bar.

And from Reuters UK:
“Recent signs that Fed officials appeared to be nearing a decision to start winding down their bond purchases to end stimulus contributed to the negative tone for gold, even though inflation has failed to materialize as feared during its rounds of post-financial crisis quantitative easing.”

While there have been reports of opposition to further quantitative easing by certain Fed governors, the reality is that any wind-down of the $85 billion ‘asset purchase’ program by the Fed would immediately be accompanied by a stock market swoon that have brokers having heart attacks and jumping out of windows.

Again, mis-reporting by the mainstream financial press is biased negatively toward gold. If it was objective reporting, questions surrounding the death of the gold bull market would be offset by questions as to what could possibly slow the bull market down, given that all of the macro-economic factors that catalyzed the bull market in the first place are not only still present but amplified. Currency debasement, sovereign debt, economic uncertainty, geo-political instability – all of these contributors to pro-gold fundamentals have only intensified in the decade since the gold bull got up a head of steam.

At the end of the day, the discerning reader must conclude that the mainstream financial press is not an unbiased reporter of facts, but a collusive partner with the AMSCAM (American Syndicate of Collusion and Manipulation) syndicate of banks, Treasury Department, Fed, CFTC, etc.

James West

James West

Editor and Publisher

James West founded Midas Letter in 2008 and has since been covering the best of Canadian and US small cap companies. He covers global economics, monetary policy, geopolitical evolution, political corruption, commodities, cannabis and cryptocurrencies. As an active market participant, James is not a journalist and is invariably discussing markets...
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