Gold's New High: A Round Up of Views

Gold is making new all-time highs daily, as the dollar price for spot gold rises above $890 an ounce.

Strong fund buying since the start of the new year, momentum in the key Japanese gold futures price, and the launch of a new gold contract in Shanghai helped to fuel the rise, according to Reuters.

With the recent bullish action in gold prices, I've been planning a little wrap-up of some interesting gold commentary. We hope this post will shine some interesting light on the precious metal's bull run. Let's begin.

1. Financial Times - "Gold is the new global currency". FT seems to be gradually coming around to the idea that gold is, in fact, money. Yes, Virginia, gold has been money for over 2,000 years, and it will still be here when those banknotes you hold in your wallet are nothing but museum pieces (to paraphrase Richard Russell).

2. Bloomberg - "Gold climbs to records as investors seek alternative asset". Professional investors argue over the merits of buying and owning gold. Still, it's nice to own something that won't get cratered by unexpected defaults and faulty agency ratings.

3. Prudent Investor - "Gold hits a record - you would not know from the WSJ". Toni Straka makes some interesting observations on the mainline media's haughty attitude towards gold and honest money in general.

4. Finance Trends Matter - "Recent Gold Action". If you'll take a look at this article from April 7, 2006, you will notice mention of a negatively slanted story in CNN Money entitled "$600 gold: Want in? Think twice".

A very authoritative piece, which at that time, warned readers of the dangers of investing in an overstretched gold market. The only problem was, gold shot right through the dangerously unstable $600 level and zoomed right up to $700 in no time.

CNN Money then dusted off the same piece and tacked on "$700 gold" in the article title as a substitute. The link now points to an article with this revised title. Talk about your all-time dishonest mainstream media moves.

Since the originally titled article is no longer found on the web, except for reference in CNN Money related article footnotes, I had to search for another reference to the original article. You can find it in this post, at the Kontent Review blog.

You'll also find reference to the original $600 gold article in this Poynter Online article. Note the date of the article and original references to the $600 gold price.

Now you know the real story.

5. James Turk - "In 2008 gold should glitter". Article in the latest SFO argues for a continuation of the gold bull market.

Well, that should give you something to chew over. And if you'd like any bearish perspectives on the gold price, check out Marc Faber's recent call for an upcoming gold and commodity correction over the short-intermediate term (he is still long-term bullish on gold).

Or you could just go and read some old CNN Money articles.

Comments

[Brian in Mo...:]

Warning Reprint, but not from CNN.com,
Here's somthing else to chew on,

Gartman is selling gold, and I thought he was pretty smart when he was just buying it !

Kitco.com or kitco.ca for us canadians, for the real prices of precious metals. I'm on their site often.

Cheers, Brian in Montreal, and it's no safer up here just colder.

2008 Jan 10 11:40 PM

[ussmls7:]

Yes Gartman is selling gold, have you ask him if he is buying silver with the profits from the gold sells? I would. Silver has and will out perform gold in a way that most have never seen. When the 4 huge shorts are forced to cover, gold will look like a speck in the blast from silvers flight to the heavens.
As for the MSM, they are nothing but the voice of the power houses of cards that are falling in there on crap that dished out to anyone that would believe them. With the internet, you can find truthfull info on any subject, but you damn sure better verify all before you act.
If cnn would let lose of all those so call reporters that only have one veiw, they might get some creitabity back, but I dont see it happening, and they will remain losers from the top down.
Now that silver is moving, if you bought 100,000oz at $3.75 oz , would you sell now at $16.00 or wait? Just asking?

2008 Jan 11 12:04 PM