Phony Data Won't Hurt Gold for Long
Source: GoldSeek, Rick Ackerman (12/7/09)
". . .no one in America outside of newsrooms even remotely believes whatever unemployment statistic the Labor Department concocts"
But what has changed, really? Answer: nothing. If you were bullish on gold Thursday before it swan-dived, then you should still be bullish now. Gold still enjoys enormous support from sovereign buyers around the world who are rightfully concerned about the soundness of the dollar. And it still represents the best hedge against an all-out global effort by the central banks to avoid deflation at any cost.
In the meantime, do you think buyers from China, India, Russia and Brazil were dumping bullion on Friday? Of course they weren't. But we can hardly blame them for stepping aside as gold fell on the kind of news that any thinking investor would recognize as meaningless. The same strong hands that have been buying gold since $300 an ounce will be hoping for more panic-driven selling on Monday, and so should we. The bull market in precious metals remains very much intact, notwithstanding a phony downtick in a statistic that understates unemployment by half to begin with. If that's the kind of news that drives markets, we would do well to tune it out and simply focus on the charts. They told us within 40 cents where Friday's peak would occur, and they will tell us with equal clarity when this correction is ending.