Ever since Gold broke through the $1,130 support level and plunged below $1,100 an ounce the sentiment toward Gold has rapidly deteriorated. It is difficult to find any positive articles about Gold in the financial mainstream media.
Consider the recent headlines by the major media outlets:
- From the Wall Street Journal: Let’s be honest about Gold: It’s a Pet Rock
- From the Washington Post: Gold is Doomed
- From Bloomberg: Gold is Only Going to Get Worse
- From Market Watch: Two Reasons Why Gold May Plunge to $350 an Ounce
The link below gives readers good perspective as to why Gold might be nearing a sentiment low.
Financial Media’s Track Record Making Predictions
Now let’s take a look at some other headlines from a few years ago.
- In May of 2006 Bloomberg put out an article titled: “Why the housing bubble won’t burst” Two months later US homes prices peaked and declined by 33%, representing one of the worst housing recessions in US history. (Source: Casey Research: how-golds-magazine-moment-could-make-you-rich)
- Reuters ran an article on August 22, 2011 titled: “Banks race to raise gold price forecasts” According to the article, all large financial institutions unanimously increased their gold price forecasts. The article ran one day before Gold peaked! (Source: GoldSilverWorld 2015 July 20th)
The Consensus Forecast is Almost Never Correct
With so many negative articles being written at the same time it could signal that Gold is either at or near a bottom. The consensus view is almost never correct. The fact that the mainstream media thinks Gold is dead is a good sign that it will soon enter a major uptrend. Financial engineering an innovation has led to illusion that debt does not matter any more. But history is on the side of Gold investors.
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