Deprogramming Some Gold “Community” Propaganda

This week from a writer who uses way too many ‘!’ when writing to his gold bug audience, and who once referred to a “drop dead gorgeous bull wedge” on a GDX chart in a ‘!’ strewn article in the midst of the bear market, just before a big drop in gold stocks…

Bullion has outshined the miners for twenty years, and now it’s becoming time for the miners to lead, and lead for a very long period of inflationary time!

Ah, you’ve got it backwards, Spanky. The miners may lead gold during an inflationary bout, but that is not a healthy reason for them to do so and global inflationary growth (he heavily promotes China and India gold demand, AKA the “Chindia Love Trade”) is the furthest thing from a valid reason. Look no further than the completely warranted liquidation of the gold mining sector in Q4 2008 after years of inflationary excess destroyed its fundamentals.

When gold bug writers lather up the herd with talk of inflation they are leading lambs to the slaughter. Think about it, the market bears out the fact that inflationary global growth will benefit other assets far better than gold or certainly, gold miners. As copper, tin, steel, palladium, oil and virtually all stock markets out perform gold the miners would be asphyxiated, fundamentally.

This post is no comment on what is ahead for the miners, but it is a comment on how the most visible writers in the gold “community” continually lead the more gullible bugs astray with ridiculous pumping. Time again for the Macrocosm. Check out the two smallest planets.

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