Why Wall Street Hates Gold
Source: Personal Liberty Digest, John Myers (3/25/10)
"Most of all they fear sanity just might be contagious. . ."
The reason is simple: ordinary investors that count on gold don't need Wall Street. They don't need the slick stockbrokers, the puffed-up analysts or the aristocratic money managers. In the eyes of Wall Street gold owners didn't contribute a red cent to the $20-plus billion in bonuses they got last year.
Twenty-billion dollars might seem like a mega-lottery, but Wall Street always wants more. Bonuses were bigger last year than the year before even though The Street almost hurtled the world into an economic dark age.
But Wall Street is scared. Most of all they fear sanity just might be contagious; that more and more investors will be reluctant to throw their hard-earned savings into a marketplace that is overpriced and on the verge of collapse.
Little wonder that CNBC, The Wall Street Journal and the rest of the financial media hammer away at gold. They reiterate the Keynesian mantra that it is a barbarous relic and call it a vastly overpriced commodity whose bubble is about to burst.
"Talk of a Gold bubble over the past 6–9 months grows louder and louder," writes The Market Oracle. "It is comical and a sign of desperation among those losing their grip on the levers of power and influence. I have never seen a bubble so heavily recognized and announced."
When I was born some 50 years ago, companies could get about 12 grams of gold for every ton of rock you pulled out of a mine. Today they have to mine four tons of rock to harvest that much gold.
So there doesn't appear to be enough gold to satisfy demand, at least not at these prices.
Action to take: continue to accumulate gold.