It was bad enough that a numbered bullet point, (!) using tout has been lathering the gold “community” lately with an amazing fundamental consideration he calls “the Chindian love trade” (you know, in China they buy gold for love and as their economy grows gold will go way up in price). Never mind that he promoted gold for Indian Weddings and China demand all through the bear market or that as recently as last week he predicted that the US ‘jobs’ number would be huge and gold would sky rocket due to panicked institutional demand in the face of rising inflation.
You can’t make this stuff up. It annoys me, but now this darker thing comes about in the mainstream media, right on cue, just as gold hit the key resistance area surrounding 1220 that NFTRH, for one, has been noting.
Peter Schiff, more bullish than ever, sees gold headed to $5,000 an oz.
Schiff: upside potential in gold equities is ‘phenomenal’
Get this, gold equities have been on an anti-USD bounce along with all kinds of other stuff that will probably not be rising with them when a real bull market gets started.
The same people who were surprised that the USD rose to begin with (we were not; we gauged and tracked it from day 1) are now getting pumped again due to its correction, which was predictable given its strenuously over bought and over loved status. But an ‘anti-USD’ bounce is all it is in the precious metals until certain parameters are taken out and certain fundamentals join other fundamentals in indicating a real bull market.
I won’t go into details because well, those are for NFTRH. But I had to make this post because the timing of this article made my jaw drop when I saw it.
Schiff argues that more QE is coming to try to fix the damage done by the previous QE’s and that there really is no limit on gold’s price. Fine, there are reasons that gold can one day get unchained and rise impulsively. But gold is a value instrument, not an asset price instrument. This is casino patron stuff.
