Fox Biz: Gold to Fall to $1,200 Before QE3 Announced

July 20, 2012 By 6 Comments

In the latest sign that the bottom is in (or at least extremely near) in gold, Fox Biz has released a hit piece on the metal, calling for gold to fall to $1,200 before QE3 is announced in December at the earliest.

Quotes in the hit piece include: ‘The economic and global instability seem to having investors losing confidence in the precious metal‘ and ‘Now’s not the time to buy gold.  There are better investment opportunity elsewhere‘ and even attempts to keep investors from considering gold producer shares after their 12 month beat-downs: ‘Avoid gold miners. You’re taking on two significant risks when investing in gold miners.  You’re taking on risks in equities as well as risks with precious metals.  It’s not worth it.‘

Apparently going long on an asset in the midst of a major secular bull market after 12 months of consolidation/correction is a ‘significant risk not worth taking’ according to the MSM.

The continuation of paper pushing sell-side drivel on gold and silver only serves to reinforce our belief that the bull run in gold and silver is nowhere near complete.

Gold ETFs fell even further into the red this week following testimony from Federal Reserve Chairman Ben Bernanke that showed hesitation to pump more money into the system. Failure to hint at additional quantitative easing disappointed Wall Street as investors continue to wait for any signals of stimulus to help ignite recovery.

Bernanke’s congressional testimony sent gold and other hedges against U.S. dollar debasement into negative territory.   On the Comex in New York, gold futures for July delivery are down more than 1% this week, and six of the past seven sessions. 

Exchange-traded funds backed by physical gold, such as SPDR Gold Trust ETF (GLD) and iShares COMEX Gold Trust (IAU), reported negative returns. 

The economic and global instability seem to having investors losing confidence in the precious metal.  Investors have pulled $185.08 million out of SPDR Gold Shares and $95.73 million out of iShares COMEX Gold Trust so far this week, according to IndexUniverse.

Historically, gold is a popular safety play during times of financial doubt, but its prolonged slump is prompting investors to seek other options.  


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Comments

  1. Avatar of AGXIIK AGXIIK says:
    July 20, 2012 at 11:54 AM

    What’s that old saying?  “Buy when everyone else is selling”  

  2. Avatar of Plebian Plebian says:
    July 20, 2012 at 12:20 PM

    Before the term “Quantitative Easing (QE)” was popularized, gold and silver had gone up in price by multiples since 1999.  Why does everyone suddenly expected that gold and silver prices will fall unless “QE” is announced?  That’s just an excuse to justify the latest ongoing and relentless manipulation and suppression of gold and silver prices.

    By design, the fiat debt monetary system requires the exponentially increasing creation of new ‘money’ in order to sustain itself (eventually leading to collapse).  We are now at the high end of the curve, so creating exponentially larger sums of ‘money’ is the only ‘solution’.  The problem is that this is guaranteed to lead to a HYPER-INFLATIONARY COLLAPSE of the fiat currency system–and thus the financial and economic system of the world.  This is the main reason that people seek protection in physical assets, the best of which are the commodity-money gold and silver in physical form.

  3. Avatar of silver psycho silver psycho says:
    July 20, 2012 at 12:31 PM

    Fox Biz:  What a load of shi*t.  Gold dropping to $1200?, stay away from buying gold?, its too expensive? Please spare me these awful articles, they reek of shi*t.  Keep Stacking and ignore these misinformed reporters from mainstream press.  And keep mainstream propaganda outside of the silver doctors forum.

  4. Avatar of SilverHawk SilverHawk says:
    July 20, 2012 at 1:59 PM

    ‘The economic and global instability seem to having investors losing confidence in the precious metal‘
    Isn’t that like saying “Passengers on sinking ship losing confidence towards migrating into life rafts”? 

  5. Avatar of silverwulf silverwulf says:
    July 20, 2012 at 2:18 PM

    lol, when the rabbits start getting skittish grab a bigger gun widen the choke and fire for all you’re worth!

    Definately gonna try and get some more phyzz if these clowns are comming up with this crap.

  6. Avatar of jj83 jj83 says:
    July 21, 2012 at 3:08 PM

    They’re just making a call on gold and QE: near when it hits $1200 is when it is time to buy due to likelihood of another QE program in place.

    Anyways, Sudan looking to gold for salvation:

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