Its all relative. The title of the story puts the usual negative slant on gold investing. The headline should be “Gold holds its own in 2008″
December 26, 2008, 11:07 am
Gold, Not so Golden in 2008
Posted by David Gaffen
It’s been a terrible year for most major asset classes — stocks, real estate, hedge funds, and commodities. One of the assets that investors might have expected to do a bit better in such an environment, when the vast majority fled to higher ground, was gold. But gold’s performance this year has been a disappointment.
As of Wednesday, gold closed at $847.10 per troy ounce, up 1.5% on the year. Compared with a 40% decline in the Standard & Poor’s 500-stock index and a 60% drop in crude oil, that’s just fine — it is, after all, a return of capital. But analysts say gold failed to capitalize during market turmoil because for much of the year, gold was as much a part of the craze as any other asset.
“We weren’t necessarily seeing the rush to safety of this safe-haven market that gold has been in the past,” says Darin Newsom, DTN senior commodities analyst. “We were seeing a get-me-out effect in all commodities, and there was no belief that the gold market was any more sustainable than any other commodity.”
The yellow metal settled at a record $1003.20 on March 18 and has lost nearly 16% since. The gains were fueled by much the same activity that boosted grain commodities such as wheat or corn, as well as energy-related commodities — an abundance of liquidity seeking undervalued investments.
With inflation anticipated to rise, gold was a beneficiary. This run, however, increased gold’s correlation with other assets such as oil and stocks, and when those assets started to falter later in the year, gold, by virtue of its already lofty position, failed to respond positively.
“This was the perfect storm for every prediction ever made for gold to come and vindicate its safe-haven attribute, but it’s largely falling victim to deflationary pressures,” says Jon Nadler, senior analyst at Kitco.
In the late summer, renewed strength in the dollar added to pressure on gold, and caused it to decline further as investors worried more about deflation. Only more recently, as the dollar has declined, has gold regained a bit of luster, rising 9.4% in December, to $774.60 to $847.10.
“It just keeps your buying ability intact as opposed to giving you much of an advance,” says Dennis Lamson, registered investment advisor at CobyLamson Capital Management in Medford, Ore. He says that the declining availability of coins suggest that demand for physical gold still exists as a hedge against various factors, including rising inflation. Of course this is bias when in fact Gold is up over 150% since 2001. Call The Superior Gold Group and get the facts, “Liars go figure—Figures never LIE! Call 888-969-6465 and get your free portfolio analysis NOW!
Should the Federal Reserve and other central banks achieve success and re-inflate the economy, that could be a tailwind for gold. For now, investors will have to contend with the fact that it was one of the few assets that did not lose anyone money.
Read more: Commodities
Comments
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What`s wrong with breaking even as gold has done?
It sure is alot better than losing your ass in the stockmarket,as was the case.
Comment by - December 26, 2008 at 12:51 pm
The far eastern markets will be a sign in the New year of the prospects for gold in 2009 and watch for early signs of buying pressure from this area which could send the metal close to 1000 again
Comment by - December 26, 2008 at 12:53 pm
Jon Nadler is a f—- idiot aand you denigrate your newspapers’reputation by publishing his views.
Comment by - December 26, 2008 at 12:54 pm
gold is not down..not if you are british …up 30 percent to us ….
Comment by - December 26, 2008 at 12:55 pm
You must be kidding? who in their right mind believes that there is no ‘intervention’ in gold.
Comment by - December 26, 2008 at 12:57 pm
Gold is the only place to be - and a good place to start is with as much bullion as you can get your hands on.
As to Nadler, he has both personal and business issues with gold which will come to a head in 2009, as we move from rumor to fact.
Comment by - December 26, 2008 at 12:59 pm
The title of this article betrays the actual content
if you speak with any serious investor they will tell you that first and foremost amongst their investment criteria comes the probability of preservation of capital
not losing is a huge win and lets one play another day
Comment by - December 26, 2008 at 12:59 pm
Keep on pushin’ those toxic paper products on Wall Street and shunning gold. Wall Street and those like this author who support it’s fraudelent practices have contributed to the most precipitous drop in the average persons wealth in history. In the meantime, those who rightly believe in gold as a currency and not as a commodity will realize another in a string of 7 straight years of annual gains.
Comment by - December 26, 2008 at 1:01 pm
Its all relative. The title of hte story puts the usual negative slant on gold investing. The headline should be “Gold holds its own in 2008″
Comment by - December 26, 2008 at 1:04 pm
Nadler worked establishing “paper” gold programs at banks before becoming a “wisened” gold analyst at Kitco.
If you are going to cite Nadler, You should write about how Kitco has been “selling” gold and silver this year with no promise of delivery dates and no guarantee of refunds in the even of failure to deliver. Seems pretty calculated to destroy the precious metals market. This would not be tolerated in any other area of sales or securities (except naked short selling… hmmm….)
Comment by - December 26, 2008 at 1:06 pm
Hummm-gold didn’t do so well. hmmm- Dow down hard, S&P down hard, Nasdaq down hard, but gold is only UP 1.5%. How does this NOT protect capital? ISN’T IT MORE REASONABLE TO SAY THAT GOLD ID UP 41.5 PERCENT MORE THAN THE S&P ?!?! Now that’s an accurate headline.
Comment by - December 26, 2008 at 1:07 pm
Two hours after your story was posted spot price is $22.00 up, if gold isn’t golden… what is?
Comment by - December 26, 2008 at 1:11 pm
Gold has been money since the days of the old biblican Lydians, some 4000 years ago - and no modern day banker or anyone else is going to change that.
Comment by - December 26, 2008 at 1:16 pm
All the money being printed in ‘08 and the expected increase in ‘09 will come home to roost. Inflation is running over 12% when using the government’s formula they once used in 1980 and earlier. Those international investors holding trillions of US debt will soon give up their holding when they realize they have list so much purchising power. When they stop buying US notes gold will be the only item that they will trust. They already own most of the US gold reserves through SDR’s.
The gold may be in our storage, but they own it.
Comment by - December 26, 2008 at 1:17 pm
The private central banks have been manipulating the gold markets to prop up their phony fiat currencies. This will only work for so long though.
Once our economy has been completely looted, gold will likely skyrocket and the criminal banksters will probably try to seize your gold again. When are we the sheeple going to wake up and stop this nonsense once and for all. I fear never.
Comment by - December 26, 2008 at 1:18 pm
This post sounds so silly. The bias against gold is so obvious that you just have to shake your head and laugh. Gold is up slightly and almost everything else is down. Isn’t that the definition of a safe haven??
Comment by - December 26, 2008 at 1:20 pm
Sales of gold bullion coins broke all records in 2008.
Comment by - December 26, 2008 at 1:24 pm
People, don’t get so worked up about idiots like these.Understand that David Gaffen is a sheeple and not a people and knows nothing better than to follow the other sheeple.
Comment by - December 26, 2008 at 1:25 pm
When China, Japan, Germany findout how they have been robbed by those phoney AAA CDS’s GOLD will go to the moon!
Comment by - December 26, 2008 at 1:27 pm
This article is typical Wall Street anti-gold propaganda. It is shameless.
Comment by - December 26, 2008 at 1:27 pm
The problem with the U.S. is it considers itself the epicenter of the universe. Gold is up in most major currencies as pointed out by our British friend. And, as pointed out by most posted comments, I’d rather be even than down. But keep writing stuff like this David, it helps prevent bubbles and I’d like to hold my gold a little longer.
Comment by - December 26, 2008 at 1:29 pm
They wrote the article a day too soon. As I write this comment, Spot Gold is up over $20 since Christmas Eve and over 5% since 365 days ago. It will top $1000 again in February or March. Then we’ll take our profits again. Who is John Galt? Everyone who knows that gold is the only real form of wealth.
Comment by - December 26, 2008 at 1:30 pm
Gold is the constant and thus neither rises nor falls. It is the Dollar that is the varible.
Comment by - December 26, 2008 at 1:32 pm
Sorry, we just sold the last ounce out of Fort Knox.
Comment by - December 26, 2008 at 1:35 pm
Yet another example of how Rupert Murdoch is doing whatever he can to discourage people from investing in gold so he can pump up the US economy and the equities markets.
Comment by - December 26, 2008 at 1:36 pm
Prof Triffin (Yale, 1960s)stated that debt cannot grow in excess of output plus real savings without causing a collapse in the underlying currency. The dollar’s slow motion car crash since 1971 is about to go into Hammer Time. If not, we will see a deflationary collapse, as we need to create over 2.2 trillion in new credit just to service the existing debt mountain. Happy New Year!
Comment by - December 26, 2008 at 1:36 pm
Gold us up $24.00 as we speak. Nadler has an agenda…one that includes saving Kitco from disaster. Remember:
You can print shares. You can print dollars. You cannot print gold.
Comment by - December 26, 2008 at 1:38 pm
I will quit buying gold when you publish a positive article about it. Seems you have a tough time interpreting the obvious. By the way; the year aint over
Comment by - December 26, 2008 at 1:38 pm
“For now, investors will have to contend with the fact that it was one of the few assets that did not lose anyone money.” I am smiling! and the idiots who read your column and think gold was a bad investment are stupid.
Comment by - December 26, 2008 at 1:42 pm
Nadler, you’re an idiot! Gold is roughly at the same price as it started 2008. Can you say that about the DOW or your 401k? I’ve at least broke even. Have you?
Comment by - December 26, 2008 at 1:47 pm
AS SOON AS GOLD GETS TO 1500 PER OUNCE WHICH IT WILL. WATCH OUT THE BIG BOYS WILL FIND OUT A WAY TO DROP THE PRICE. EVERT TIME THE WORKING MAN HAS GAINED WETHER IN STOCK OR GOLD THEY WILL FIND A WAY TO DEFLATE IT
Comment by - December 26, 2008 at 1:48 pm
Nadler is a shrill for a Kitco who’s main objective is to bash gold, keep it low in order for them to have product to sell. Ever since JP Morgan’s July 13, 2008 massive short sale on gold at the behest of the Fed, physical gold and silver has disappeared leaving with Kitco with nothing to sell. Even worse is Kitco pushing of their “pooled bullion accounts” which eventually will be proven as worthless as Nadler’s commentary or Madoff’s funds.
Comment by - December 26, 2008 at 1:49 pm
Glad to see that so many people see this article for what it is. Gold is nobody’s liability and has no counterparty. Sounds to me like Dave got in at 1000 and out at 750, tah tah dave.
Comment by - December 26, 2008 at 1:50 pm
Gold will do much better when the American Government stops being the decider by urging foreign banks to sell their gold and buy dollars. They simply can’t tolerate the reality of something financially safer than their dollar.
Comment by - December 26, 2008 at 1:51 pm
This negative news is great for gold as a contrarion indicator…but it is unfortunate that the non-financially astute will only listen to the mainstream financial media and buy the dow “at these depressed levels” only to see the standard variety stocks go even lower as we head further into the depression and lose further wealth and buy into the news that gold has peacked and is heading lower (and are not informed that gold is hitting all time highs in most every currency other than the USD and has 7 straight years of higher closes). When these publications have headlines on their cover that “NOW is the time to buy gold” in the next few years, you may consider selling/trimming. Got gold?
Comment by - December 26, 2008 at 1:55 pm
Aaron, thanks for the comment on Nadler.As a gold and platinum investor I’ve been confused about the bearish leanings of this pompous A-hole whose works for Kitko.I will not do business with them as long as he’s around.
Comment by - December 26, 2008 at 1:56 pm
When was the latest real audit in Fort Knox ?
The entrusted real asset from our grand parents to our next generation ?
Comment by - December 26, 2008 at 2:03 pm
David Gaffen is a filthy criminal accomplice.
Comment by - December 26, 2008 at 2:04 pm
I love the way you use BOLD type. You and your journalism credentials should drive yourself to the local landfill and jump in.
Comment by - December 26, 2008 at 2:04 pm
The Fed and the Fiat paper they print are an illusion. If it isn’t gold, it’s only a promise.
Comment by - December 26, 2008 at 2:05 pm
You guys really need to stop denigrading gold every chance you get. It’s one of the few assest which has gained value in 2008 yet you don’t seem to be able to resist putting a negative spin on it’s performance. If this story was about practically any other asset class, the spin would have been diametrically different. This story is noothing less than propaganda and you should be ashamed of yourselves for publishing it. You do your readers a great disservice.
Comment by - December 26, 2008 at 2:06 pm
Nobody belives this article. The fact that they quote Nadler make is it more ridiculuos. Gold will pass 1200 by April
Comment by - December 26, 2008 at 2:13 pm
All you dooms-day scenario gold bugs… here’s a free tip take your profits at $900 and $1000 because if gold were REALLY going to the moon..it would already be there. STOP FEAR MONGERING!!!
Comment by - December 26, 2008 at 2:14 pm
If you can’t say something nice about somebody, “trash em”.Thank you fellow posters for saying it like it is!Put me in your club.
Comment by - December 26, 2008 at 2:16 pm
I’m shocked that anyone in a reputable publication would use a quote from Jon Nadler on the status of gold. He has proven time and again that he has a commercial agenda to encourage selling of gold and those in the press who quote him are complicit in his agenda. Also his track record is abysmal on gold and always slanted to the negative.
Comment by - December 26, 2008 at 2:26 pm
I have read a good number of puerile, idiotic stories about gold this year, but this one takes the prize. Mr. Gaffen clearly struggled to string together 455 words to meet a deadline and turned in a stinker replete with shrill tone and bolding a down-on-his-luck mattress salesman would find excessive and cheesy.
And then there is dear Jon Nadler. He has been evangelizing deflation fervently for months and his smug writing easily betrays his very irrational need to have gold stay in a range between $500 and $700. Why? Has his boss figured out he made wrong-way bets that risked the business?
Comment by - December 26, 2008 at 2:27 pm
Gold is the enemy of the Federal Reserve. They know it, and some of us know it. Rock On !
Comment by - December 26, 2008 at 2:31 pm
Please please sell your physcial gold.
So we can buy more.
Gold does not make you money.
It holds its value when the dollar and other currencies are tanking. That is all it has EVER claimed to do.
So again please sell your “worthless” gold so I can buy more. Then use the money to buy more stocks.
Wanna bet they do NOT go down another 40% after the Obama ralley’s hoopla and hope die down?
Thanks.
PS
If you think that there will not be mass inflation after the Fed and Treasury have gone nuts with creating $8.5 trillion in bailouts of the big NYC banks and Obama is coming to stimulate MORE, THEN please please sell your physical gold bullion and coins. There is a physical gold shortage. We can now get all the paper we want! We do not want it.
Thanks again.
I hope you can help.
Comment by - December 26, 2008 at 2:35 pm
M. Gaffen sais: “for much of the year, gold was as much a part of the craze as any other asset.”
Obviously gold had a vary different history from other assets or commodities. How many books have been written about the monetary history of pork bellies or of eggs?
He should read some of them, at least, instead of discrediting what it is supposed to be the fundamental of a monetary system.
Comment by - December 26, 2008 at 2:37 pm
Gold is the only thing that saved the year for me. Nadler is a poor choice to quote, and diminishes your article. I agree with others sell your physical gold we’ll buy it.
Comment by - December 26, 2008 at 2:38 pm
All I can say is I wish I had all my Potfolio in gold bullion the past year rather the the so called “blue chip stocks”.I would be a hell of a lot better off!
Comment by - December 26, 2008 at 2:41 pm
Pronouncements of my death are premature.
Comment by - December 26, 2008 at 2:42 pm
my question, why didn’t they ask john embry??
Comment by - December 26, 2008 at 2:49 pm
I’m just amazed that the WSJ would publish such a poorly edited article:
“For now, investors will have to contend with the fact that it was one of the few assets that did not lose anyone money.”
I have to believe that David Gaffen (gaffe is the French word for “mistake”) meant to write that “Investers will have to be content with the …”; as it is written, that closing sentence does not make much sense.
Comment by - December 26, 2008 at 2:53 pm
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHHAHAHAHAHAHAHAH
WHAT RUBBISH!!!!!!!!!!!!11
Comment by - December 26, 2008 at 2:55 pm
gold is even for the year.. that is nice… but what the author was trying to point out is that during the huge spike in oil, gold did not jump to the $1500 mark as expected… for those looking for evil conspiracies… please… turn on the football game or take yer meds….
Comment by - December 26, 2008 at 2:56 pm
I dont take a lot of stock on what Nadler says. Gold is beautiful and great to own. I’ve got the GOLD FEVER!!!
Comment by - December 26, 2008 at 3:02 pm
Gold retained its value, while markets, real estate, commodities and indexs lost +/- 50 %.
So gold radically outperformed everything else in this deflation, and it will do the same and more in inflation.
Comment by - December 26, 2008 at 3:04 pm
Thank God for Gold.It will be a long time before I ever invest into that crooked stockmarket again. I want some heads to roll first and then a explanation why the uptick rule was removed.
Comment by - December 26, 2008 at 3:05 pm
If you invest the opposite of Nadler’s advice on gold, you will make money. His bitchy after-the-fact rationalizations are an embarrassmen to kitco. Every 10$ raise in the price of gold is another kick in his ass
Comment by - December 26, 2008 at 3:09 pm
Funny, wasn’t little jonny screaming about the fed RAISING rates back in the summer while the people with iqs over room temperature (gold bulls) said the fed will cut to zero before they raise rates……that wasn’t the first time he was exposed as a know nothing clown…..the guy is a charlatan
Comment by - December 26, 2008 at 3:12 pm
The spike in oil has less to do with “commodities” than it has to do with “elections”. You should learn to look at the world as it *is*, not as shills like Nadler tell you it is. And the *fact* is that two (or fewer) banks have 99% of the short side on silver on the COMEX. But there’s no “conspiracy”. Yeah, right. Sounds like patrick is the one who needs to tune in the bread and circuses…
Comment by - December 26, 2008 at 3:14 pm
I’m confused…I thought if the value of Gold goes down, then doesn’t that make the money I have in my savings account worth more?
-
Again, forgive my ignorance…isn’t the value of gold arbitrary. Isn’t the value is based solely on when a person buys it verses when they sell it? (if the can sell it)
Comment by - December 26, 2008 at 3:16 pm
The Wall Street Journal is the Pravda of Capitalism. You people purport to worship free markets but continue to reign in gold and silver. What are you afraid of?
Comment by - December 26, 2008 at 3:19 pm
Mistake - They DO print Gold.
Its called ETF,s
Comment by - December 26, 2008 at 3:26 pm
You can read & hear a lot of different ‘expert’ opinions on gold, but what I always ask myself is; what were they saying about gold, and getting some, back when it was well less than half of what it sells for today? IOW, if they have no track record advising folks to buy some back then, then why would we think they are any smarter now today telling us why it’s doing what it’s doing, much less what it will do next?!?
I choose, instead, to listen to those that have been getting it right for the last decade, like at…
www.jsmineset.com
…and…
www.lemetropolecafe.com
Got God, Grub, Guns & Gold?
Panic Early, Beat the Rush!
- Shane
Comment by - December 26, 2008 at 3:29 pm
Sitting here in the UK: on Xmas day last year gold was at 405 British Pounds per ounce. Yesterday it was at 573. That makes gold an oustanding investment choice for the last twelve months. Today it is at 592 as I write. Everything else has lost value. People without gold are going into 2009 very frightenend indeed, and rightly so.
Comment by - December 26, 2008 at 3:30 pm
Yip Im in UK aswell I made the mistake and didnt buy Gold last year but have now. Managed to get Eagles and Britannia,s also took the plunge with Mandella 2oz gold coin collector boxes.
Comment by - December 26, 2008 at 3:39 pm
Gold demand, especially physical demand has been high, so has demand for treasuries. Gold was up significantly in some other currencies. The dollar rally caused by treasury buying, has reduced gold’s dollar rise.
John Nadler is great.
Comment by - December 26, 2008 at 3:41 pm
I wrote an essay in 1967 called “Gold and Economic Freedom” please read my last parapgraph especially…
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.
Comment by - December 26, 2008 at 3:41 pm
This year gold acted contrary to nature. This tells me that a skunk is in the woodpile. I dont believe that those who are playing these games can keep it up forever. Not with the crazy criminal ways the Fed and Washington are acting. Anyway Bush will be gone soon and the world can come back to normal
Comment by - December 26, 2008 at 3:44 pm
Nadler is a Canadian Socialist who loves big government like he loves his mommy kissing his boo-boos, cleaning up his fiasco’s and paying his way for the last 40 some years. — Even when he has been proven wrong in the past, he turns it around in that bizzaro socialist linguage skills the learn to make it sound like he predicted it all along. He’s a fraud and hack.
Comment by - December 26, 2008 at 3:45 pm
Every Madoff investor would be sitting pretty right now if all of their billions was in Bullion…paper is for suckers…even the “news” papers of the mainstream media…there is no such thing as something for nothing…thank god for Gold.
Comment by - December 26, 2008 at 3:45 pm
Well now kiddies, don’t get your short… shorts in a ruffle here, (*IT) seems as thought if anyone followed the Oz’s Golden Way (RULES)… who ever had the GOLD (Au) when he said to buy and sell… well they just flat out “F”-ing rule!
His reports and predictions were right on target through out 2000ATE, (*IT) was very clear where and when he made his Money at… ya’ think, I do and I know… (*IT) for a fact!
Comment by - December 26, 2008 at 3:47 pm
I kept interest rates artificially so low for so many years that I practically was telling people to buy gold..but the fools didn’t listen…instead they traded “up” for a bigger house, with bigger taxes and a bigger mortgage…what boobs!
Comment by - December 26, 2008 at 3:50 pm
I am definitely staying long gold. Much better than paper money. Greetings from South Africa where we dig gold out of the ground and give it to the Fed to store underground and guard it. So far the Fed is doing a good job.
Comment by - December 26, 2008 at 3:51 pm
John Nadler never answered my quetion back in September on how it was that COMEX spot was at $700, but the Kitco online store had nothing to sell! He is slicker than my pal Bernie M….
Comment by - December 26, 2008 at 3:54 pm
I agree with all the comment on that useless dicredited lush JON NADLER.The number offinancial publications that carry the garbage he speaks says nothing for them.Nadler is as discredited as Andy Smith who was an analyst for Mitsui .These brain damaged idiots only frustrate the readers of websites like KITCO which has not enhanced its reputation.My question to Kitco are really serious about GOLD when you employ the likes of that slimeball jon nadler .I have never ever read a creditable article written by him and whenever he can get anyone to agree with him their articles fill most of his drivel backing him up like an atni gold drug.
Comment by - December 26, 2008 at 3:56 pm
WSJ and other establishment media outlets can try all they want .. but the cat is out of the bag.
Investors in gold are way too strong and sturdy to be shaken off their investments.
If WSJ wants to avoid bankruptcy they better start providing authentic and unbiased news .. and FIRE these reporters like David Gaffen who write articles that are contradictory to headlines of their own article.
Comment by - December 26, 2008 at 3:57 pm
I am not sure why they have not thought of it yet, but I just got of the phone with Hank Paulson and Ben Bernanke…the $100 bill should just be replaced with the $1000 bill! add a zero! c’mon, Ben, you went to Princeton…if you really want to flate’, just add zeros! P.S. I think another round of economic stimulus checks for $1 million per U.S. citizen ought to do the trick..we’ll all be rich!
Comment by - December 26, 2008 at 3:58 pm
Your article, the self serving failure to cite gross manipulation in the form of contradictory, timed short sales and coordinated PR releases and biased commentary makes for an equivalent of Wolf Blitzer in his “Situation Room” on CNN talking to Paul Wolfowitz or Fred Kagan on the pathetic, trumped up search for WMD in Iraq. Maybe you should forgo disinformation on gold, and stick with say, Niger Yellow Cake Uranium sales….
Comment by - December 26, 2008 at 4:01 pm
john nadler he knows nothing he knows nothing
Comment by - December 26, 2008 at 4:04 pm
Just wanted to say “sorry” for ruining the entire country..I guess I kind of stepped on the “easy money” pedal a tad bit too long. But I did stick up for gold in my 1967 essay…it’s just that the politicians and the American people all wanted to believe in the power of inflation…everyone wanted money, and lots of it..so I gave it to them. And gave it to them good…and now they are starting to curse me! anyway, sorry. If you do have anything left, buy gold. Helicopter Ben means business!
Comment by - December 26, 2008 at 4:07 pm
Gold did all right considering the huge rush to liquidation. Ready and available money from a resource not falling was overshadowed by what is coming next: a complete lack of confidence and a failure of trust. Look out for yourself.
Comment by - December 26, 2008 at 4:08 pm
Leave Jon Nadler alone..he just likes the paper stuff better…to each his own, you know! He will be happy in the years to come, as the amount of dollars he has will grow, and grow significantly. They may not buy as much, if anything, but he will have LOTS of paper money…hurray!
Comment by - December 26, 2008 at 4:10 pm
What is a better option - to earn 0% interest on bullion or to earn 0% interest on the greenback?
Comment by - December 26, 2008 at 4:14 pm
If you paid 1 million dollars per inch to build a highway to nowhere, you could build over 15 thousand miles for a billion dollars. Credit debt for the world is estimated at 500 trillion - The current 8 Trillion US would represent over 200 MILLION MILES. No inflation coming? NUTS!
Comment by - December 26, 2008 at 4:14 pm
I must say, house arrest sucks. But I am with Gaffen and the WSJ on this one. What kind of world would it be if people couldn’t give their money to professionals like me to invest? we are smart and sophisiticated. We do a better job of making sure your money buys us mansions in the Hamptons and shiny new Mercedes. All you were going to do with it was sit on it and then use it for a rainy day…BORING! That’s why gold is useless,it just sits there..it does not pay any dividends (even if they are from newer investors) and it doesn’t even have the courtesy to send you a paper balance sheet every year showing how much money it made for you. Worst of all, even the dimmest of peole can buy it and hold on to it, so there is no need for high-paid money managers like me…I say make it illegal to own again. Sorry, I have to run right now, Lawyer calling..
Comment by - December 26, 2008 at 4:15 pm
It’s true that there are too many gold bug cheerleaders out there, and it’s best not to get swept up in their unsustainable optimisim, but Nadler is anti-gold, and it’s best not to listen to him either. Unlike gold investors, Nadler gets weak in the knees for big government. He trusts Big G completely and gives them his undying devotion and propaganda skills. - For these and other reasons, don’t listen to him. If you want an unbiased, non-cheerleader, pragmatic & realistic viewpoint toward gold, read Mike Rozeff’s articles. He keeps it real and is 10x more educated than Noodler. — And another reason to despise Nadler, back in late Oct. or Nov, he tried to assasinate the character of Howard Ruff and other’s who have been warning of the coming economic collapse. In a mean spirited, unprovoked and in extremely poor taste the Michael Scott of the gold world (Nadler) ripped into some of his fellow colleagues with a chain saw. Now that Gold and gold stocks are rebounding nicely, Nadler just made himself look like the socialist idiot he is. - Would you listen to Michael Scott? (The Office) - Would you listen to the Barney Frank of Gold? You watch, even when the Barney Frank of the gold world is proven incredibly wrong, he’ll just lie and pretend that he was right all along. I’ve seen him do it - and I hope to run into him again.
Comment by - December 26, 2008 at 4:16 pm
I read Nadler’s commentary daily; he never has a positive word to say about gold and lacks the ability to view the metal’s performance, and potential, objectively. From a British perspective, gold this year has been fantastic; rising around 35% in value. This is not surprising as British Pound Sterling (like most other fiat currencies) is a disaster and heading for oblivion. With the massive explosion of money supply all over the world, investors who avoid gold and silver, will do so at their peril.
Comment by - December 26, 2008 at 4:16 pm
Gee, why are readers generally abondoning newspapers? Why does anybody bother reading the largely irrelevant and ill-informed Wall Street Journal?
Comment by - December 26, 2008 at 4:17 pm
I’d suggest to Mr. Gaffen that he try to purchase a modest amount of gold at the spot price. Add 8-9% premium to the spot to obtain a more realistic assessment of the increase this year. 4-5% may be more accurate as I believe 4.04% was the premium last year.
Comment by - December 26, 2008 at 4:19 pm
Very unprofessional journalism! I can see from the responses that EVERYBODY believes this stuff.
Gold is up over 30% in Aussie dollars so far this year and up in many other currencies.
Nadler won the ‘Moron Of The Year Award’ in 2007 and has to be odds on for the quinella in 2008.
Comment by - December 26, 2008 at 4:20 pm
I hate gold…every time I crank up the printing press, these idiots all over the world want to drive the price of gold up in U.S. dollars because they are afraid that few more trillion here and there is going to cause inflation. And if the price in dollars for gold goes up, it let’s people know how much I am printing. What business is it of theirs? if the moron public would just borrow and spend more, everything would be ok…damn, I hate this job.
Comment by - December 26, 2008 at 4:21 pm
by the way, deflation is never going to happen, unless of course there is a shortage of paper and ink or we find we can only fit so many zero’s on a bill. True, there is asset deflation right now, but the TARP money will alow my cronies to buy up those assets on the cheap. Man, being a central banker is easy!
Comment by - December 26, 2008 at 4:24 pm
people laughed at me when I wore all of those gold chains and earrings..I pity the fool who doesn’t have any bling!
Comment by - December 26, 2008 at 4:26 pm
speaking on behalf of the dead founding fathers, we told you idiots that money shall be only gold and silver, and put it in black and white for you to read it! did we notalso tell you to allow congress to control the money supply, not a central bank? you idiots! you will now get what you deserve…broke, with nothing to look forward to other than another year of “American Idol”…
Comment by - December 26, 2008 at 4:29 pm
I can’t believe I wasted 5 minutes on the author of this stupid article. I hope he continues to invest his fiat into Bank of America stocks while worshiping Jim Cramer. What a loser.
Comment by - December 26, 2008 at 4:32 pm
I am a a descendant of the Pharaos. I still live by their conviction and firmly
believe that Gold is the only
store of value. Wait until
Obama implements his huge
stimulus package causing
unprecedented inflation. Those
who still believe in paper
assets will take them by
the wheelbarrow load to the
supermarket to buy a loaf of
bread as happened in Germany
after the second wrold war.
Then they will believe in the
time honored resilience of
gold. Gold is such a beautiful thing to look at
that it gives people a high.
If I own it only for the
satisfaction of looking at its
dazzling beauty and great
properties I will still own
it regardless of the equivalent in pepaer money.
Comment by - December 26, 2008 at 4:32 pm
Full disclosure - I have a percentage of my net worth in gold.
I agree there is a significant bias in the reporting on gold as an asset class. In a year where stocks lost nearly half their value, real estate has and continues to tank, it’s silly to berate gold for hold its value. Technically, the value of gold has increased against all these other assets. Gold buys 40% more of a share of the S&P than it did a year ago.
The WSJ should attempt to be a bit less obvious in their bias against gold.
Comment by - December 26, 2008 at 4:39 pm
As the central banker for Zimbabwe, I can attest to the power of gold. I have managed to reach the unimaginable inflation rate 89.7 Sextillion Percent…many of my people are starving as a result, except those lucky enough to have gold. Gold is so damn stable, it drive me nuts! me, I can’t help but printing more and more, it’s like a disease. I think all Central Bankers have it, it’s almost like you gravitate towards central banking, as if it were your life calling to make millions suffer..well, have to run, we just had a printer go down, have to see what’s up…
Comment by - December 26, 2008 at 4:45 pm
back from the dead, but I do want to go on record as saying that Gold was, back in 1971, a royal pain in my ass, and it still is. Getting the U.S completely off of the gold standard at that time was the right thing to do. How was I supposed to know it would lead to an ever rapid debasement of the dollar? What was I, a fortune teller? I may be a lot of things, but I am not a crook…if you want to blame anyone, blame the French for trying to run our gold when we were spending too much in Vietnam and on our war on poverty. Paper money is good, it never runs out, and that’s just the way we like it in D.C. …
Comment by - December 26, 2008 at 4:51 pm
what does this part of the article mean? “Should the Federal Reserve and other central banks achieve success and re-inflate the economy, that could be a tailwind for gold” … it’s easy to re-inflate the economy! I proudly hit an 89.7 Sextillion percent inflation rate this year in Zimbabwe. Have Ben give me a call if he needs any pointers…
Comment by - December 26, 2008 at 4:54 pm
Lets see, I can buy more silver, oil, stocks, real estate and foreign currencies with my gold then a year ago. But gold is a looser because I cant buy more $dollars…I dont want more $dollars just more gold.
Comment by - December 26, 2008 at 5:01 pm
To quote Nadler , is to quote the fox, on the health of the chickens. He has been floating their business on that bullion paper products. When the redemption comes there is no possible way they will enough to actually settle physical contracts..Look at Perth mint ! They have the same program,and now on the brink even though backed by the Aussie Govt. They loaned out all their bullion,and now have closed down their retail business as they are tapped out. Russia, China, Germany, Suiss have been increasing their holding. Google it, there is a tremendous shortage of the physical..Wait till the margin comes due, and soon I believe..We are going to see another Madoff scene with all these paper trades worthless, and a long line of angry investors with nothing ,but an IOU. I sleep very soundly knowing I don’t have to scramble when this next shoe drops. Actually went to 3 coin shops last week,and they were all out!
Comment by - December 26, 2008 at 5:02 pm
The title of the article is laughable. My wife and I sold up in the UK (property) in April 2007 and returned back home to Australia. We put the vast majority of our bricks and mortar into gold bullion. Measured in pound sterling we are up more than 50%, measured in Australian dollars a similar result. It has also done very, very well measured in other curriencies. Some clueless people (such as the author of this article) seem more interested in presenting a mis-leading picture. Gold is a true safe haven - we aint seen nothing yet folks. I am hanging onto our bullion for dear life.
Comment by - December 26, 2008 at 5:05 pm
They actually pay you to write that stuff? Since 2000, the Dow has lost more than 75% of its value relative to gold. In 2000, it only took $250 to buy one ounce of gold. As of the end of trading today, it takes $870 to buy one ounce. If you buy government bonds or “invest” in CDs, you are actually PAYING someone to borrow your money from you. Yet, we shouldn’t buy gold because it is a “sterile” asset and does not pay interest! It might interest you to know that, if gold finishes this year above $838 per ounce, it will have gone up EVERY YEAR since 2001. Can you name any other asset classes which have done that well?
Comment by - December 26, 2008 at 5:08 pm
Here’s a classic Nadler “prognostication”:
“Some support for the Fed’s line of thinking came today from John Lonsky at Moody’s Investor Service - his take is that this recession or whatever label the contraction will eventually wear, may be the mildest/shallowest one since the Great Depression. That would be consistent with the pattern we have observed with the past several recessions - shorter, and shallower each time… Something must be working. It could be the learning curve exhibited by the Fed in injecting liquidity and subsequently mopping it up and avoiding runaway inflation.”
That was Nadler waxing hot fedluv in his commentary from 20 May, 2008. Nadler will yammer, oh you can’t get them all right all the time.
Really? You could catch Peter Schiff that same week warning steadfast that we were heading into the largest economic crisis since the 30s.
What Nadler has actually proven is that he never gets it right. Never.
Comment by - December 26, 2008 at 5:20 pm
Gaffen, where should we start? Simple math? Simple economics? Simple logic? Simple sheep?
Comment by - December 26, 2008 at 5:22 pm
The day Nadler is bullish on gold is the day I sell!
I am heartened by the comments about this article.
It is quite obvious more and more people GET IT when it comes to gold.
We are nearly there. Keep shunning all paper metal and buy only physical.
As for Nadler - you are a prize tit and more and more people know it. They wont let you forget your brazen anti-gold comments. Soon you will have nowhere to hide your sorry skin!
Comment by - December 26, 2008 at 5:33 pm
You have very little understanding in my opinion David Gaffen.
Do you even know there are massive shortages of physical gold and physical gold is trading at a substantial premium to the price you quoted.
Do you know the price you quoted is the price of paper gold?
Were you aware that these shortages of physical gold were increasing while the paper gold price was falling in price in contradiction to the normal laws of supply and demand?
Do you even know how the paper price has been managed? You should be aware that Governments intervene in the paper currency markets, so why not paper gold?
I suggest you go to http://www.gata.org/ and keep up to date with what is really happening.
Comment by - December 26, 2008 at 5:34 pm
Your comments only reflect the paper gold on the Comex…
Physical is selling at huge premium and very hard to get….This article is clueless
Comment by - December 26, 2008 at 5:38 pm
Gold is as of today $A1266 / oz…I own Dominion Gold Mining shares , whose cost of production is $A450 / oz…Nice profitable operation, bought at $A2.00 / share 8 weeks ago, now $A3.50 / share…AND they pay $A0.12 per share p.a. dividend…Wh says Gold! does not provide a return on capital ( albeit obliquely )..It will do me ok
Comment by - December 26, 2008 at 5:43 pm
Tell me, do you have to be ignorant to work for the Wall Street Journal, or just a soulless shill? If you would bother to look at the numbers, you would see that Comex gold is up over 5% for the year, and it is impossible to find physical bullion in coin shops for anything close to the spot price.
Enjoy being paid in soon-to-be worthless fiat dollars. I will be sure to tip my hat to you when you are standing in line at the soup kitchen.
Comment by - December 26, 2008 at 5:48 pm
And have you looked at the gold and silver stocks lately. Goldcorp has more than doubled from it’s bottom and so has Silver Wheaton as well as others. These happen to be the two that I bought near the bottom.
Comment by - December 26, 2008 at 5:48 pm
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