For more of its drivel about gold, the MSM trots Frank Holmes out again. Stuck on the same refrain that has not changed since before, into and through the bear market…
Top money manager says gold may hit $1500 for the first time since 2013
Except that maybe it will go to $1000 too, Holmes allows near the end. That’s a narrow $500/oz. range!
Tell me, is Frank a “top money manager” through performance or because MarketWatch likes to churn click baiting headlines? MarketWatch notes that he “tallied a loss of about 37% from 2012 to 2015”, all the while, as I recall, remaining bullish based on gold’s “love trade” (hint: these are the financial markets and love is about as far removed from this realm as any hair brained notion could be); and because gold just can’t lose, the “fear trade” as well…
The “fear trade”—the idea that factors such as geopolitical turmoil, both here and abroad, and low-to-negative government bond yields drive the demand for safe-haven assets—is likely to continue to support gold, said Holmes.
And of course, the ‘China demand’ trade…
“Currently gold only represents 2% of China’s foreign reserves. Compare that to the U.S. where gold represents 75%,” he said. That means “there is still an enormous opportunity for China to continue to accumulate the yellow metal.”
Last I checked, if China’s going to buy all that gold someone’s going to have to sell it to them. For every buyer, a seller you know. By the way, aren’t we nearly 2 decades into hearing about the great demand from China? They’re only at 2%??? Any decade now, I guess.
Amusingly, the article notes that Holmes holds 2 of my miners, Klondex and Kirkland Lake. I bottom fed KLDX on the crash (after taking a great profit on a partial position and turning a profit into a loss on the rest) and have held the bullish anomaly KL.TO for quite a while now. So I’ll assume the guy does decent fundamental stock research even if his macro funda are goofy.
You may think I am a meanie, and you are probably right. I have little tolerance for this sector’s luminaries who somehow manage to routinely get promoted on an unsuspecting, uninitiated public by Myra Saefong and other MSM staffers.
The list goes on and on, with the more naive gold bugs following in their wake… Sinclair, Casey, Russell (RIP; ref. “Instructions: sell all stocks, except mining stocks” prior to the best of the stock bull market and worst of the precious metals bear market); even Eric Sprott got caught up in it with his Ebola Armageddon fairy story promo’d to the gold “community”. There are lots of them and the media are completely non-critical so I guess it is up to the little independent bloggers to keep reality in play.
There are a lot of people in the gold “community” who are driven by deep belief (a nice way of saying dogma) and emotion. Gold is an ancient metal that tugs at the very spirit of some people. Those with agendas pull those strings I have to believe to great effect, or they would not keep doing it. The MSM? They just like to churn the headlines. It could just as easily be the academic duo of Harvey & Erb tomorrow with their ‘gold to $800 because… no inflation’ routine.
Screed ends now.
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