If your mind is in tune with the current media 's control or you are the "man on the street" probably you don't even know what the war against gold means today.
But the war on gold has a long history, dating back the time of the Pharaons.
Starting from 1999 I report an article on Fortune, August 2 1999, against gold and the so called GOLDBUGS.
-Read this before you invest on gold
THE GREAT GOLD PRICE "CONSPIRANCY"
The ideology of fanatic gold investors - and that means most gold investors- has always be a blend of libertarian and reactionary elements.
They talk about FED conspirancies.They loathe government and its "paper money". They scorn fools who believe in stocks and the dollar.
Their feeling of superiority was reinforced in the '70s, as the price of gold zoomed up 1,4625 while the equity and bonds markets crumbled (along with, as they saw it, things like law and order).
But since 1980 gold-stock owners have lost more than 90% of the value of their holdings, measured against the S6P 500.
The price of gold is down to a 20 year low of around 250 USD an ounce.
Most economists blame the drop primarly on low inflation hedges, especially derivatives.
But to goldbugs there has to be a conspirancy. And they think they've found it. Speculators- along with mining companies and other members of the gold industry- borrowing masses of gold, selling it on the spot market, investing the proceeds in higher-earnings securities , then paying back their loans with cheaper gold.If this goes on, they warn, we're in for a financial crash because banks and dealer will have to pay an exorbitant price to cover their short positions.
The goldbugs have a point in that there is short-selling going on and it has helped depress the price of gold in the short term.
But most of the short sellers have offsetting the long position in real supplies for future deliveries. Speculative selling is limited, partly bacause the market is so illiquid.
The real problem is the huge pile of gold sitting in govermment and private vaults.
And though there may be a temporary rally soon, the downward spiral in price is likely to continue.
Sniffs Randall Oliphant, presideent and CEO of giant Barrick Gold of toronto : " I don't see how promoting a conspirancy theory encorages people to invest in gold"
Most of the selling is being done by mining companies such as Barrick, ............. ..................
.................. (short cut) .
The capital and credit for a short selling conspirancy simply aren't there.
"Gold is best looked on as slowly depreciating currency. It is in the early stages of being turned into just another commodities" says Kevin Crisp, chief gold researcher for J.P. Morgan.once its demoted to the status of pig iron and oats, you can expect to see the price falling to or below the cost of production. That could be good a $50 or more under even today depressed level.
Hard to see a comeback from here . and hard also to see a conspirancy.
JHON DIZARD
The article bring also a photo of Humphrey Bogart taken from the film "treasure of the sierra madre", with a gun in his ands and the comment by the journalist "another goldbug gone mad because of his lust for the metal".
This article, for me is stercorarious and false.
It is enough to see the development of the price of gold since 1999 to 2012.
bibliography " GOLD WARS" Ferdinand Lips, FAME 2001
