CNBC seems to have a problem with people who want to own gold, which is a valid investment as a hedge against inflation and a lower dollar. I cannot remember how many times I have heard the commentators rip gold apart and question why it hasn’t crossed $1,000 an ounce yet.
Listen, I know their deal is stocks and not commodities, but they have to lay off gold or better understand how gold works. I am in the camp that does believe that gold is held down by certain banks, the evidence is pretty solid. Every time we see gold rally to this point, on a weaker and weaker dollar, it cannot break and hold the $1,000 mark.
I do not think it is coincidence, I believe GATA when they say that banks push it down. Even the Gartman Report says, on fast money about a month ago, it is strange that at $980 an ounce someone comes out of nowhere and pushes it down. I do not know if I buy all the conspiracy behind what GATA claims is at work, but I believe that there is some type of manipulation.
However, it does not excuse CNBC constantly talking gold down. Gold was one of the only positive investments this year until July and the market rally. Should the price of gold be higher? Absolutely, based on where the metal was trading a month ago and the 3% depreciation of the dollar, but I digress.
I would like to see gold lower before I bought more, my average is in the $880 mark, but even at these prices, if you are thinking long-term, it is still cheap on a relative basis. However, silver probably offers more bang for the buck and there is not as much of it left as one would think. It is a personal preference, but there should be no reason to not buy the yellow metal.
