Gold – Falling From Grace | Armstrong Economics.
Gold has been trending lower Breaking the June low of 2013 showing that the Benchmark Forecasts in The 2014 International Metals Outlook Report are right on track as it hits fresh four-year lows. The Gold Promoters are just desperate for bullish news and will craft whatever they can to continue their delusional bubble in which they live. They will never admit being wrong. As long as anyone who still listens has a dime left to buy in a falling market, why give up now. The latest bullish news they cling to is the vote in Switzerland at the end of the month when the Swiss go to the polls on November 30 in a referendum that will lay down new rules for the country’s central bank concerning its gold reserves. There are actually people claiming a yes vote will send gold up 20% and somehow this will make the Swiss franc the most secure currency in the world. Since the Swiss have these reserves, why have they not prevented gold’s decline? So why holding on to a position makes gold bullish? Not sure where is the logic. Of course a NO vote would be super bearish for then everyone would expect the central bank to dump gold. The effective problem, naturally,is that such story spinners overlook the facts every single time.
The Swiss have suffered tremendous capital inflows because of the collapse the Euro, which this crowd also touted would displace the dollar. Sorry – the euro has been a failed corrupt currency. Their bias simply knows no bounds and comes at the expense of the life savings of so many people they have misled. The Swiss pegged the franc to the Euro and it has been dropping in tandem. The Swiss central bank has lost a ton of money on gold and the euro. Pegging the franc to the euro meant that they were buyers of euro. Then gold has crashed. The central bank has lost money from every which way possible and actually risk reducing Switzerland to a third world country. The Swiss pension funds are mandated to buy government bonds by over 80% and that pays nothing. The Swiss bureaucrats have given up just about everyone with any loose change to the Americans, French, and Germany, not to forget the Italians. The Swiss have been trying to create a security zone for data, but there too can they really be trusted? The bureaucrats in Switzerland ask other countries what would they like now?They hand over info way too easily. The Swiss bureaucrats are reducing their economy to one based on chocolate, cheese, and watches. Now with Ebola threatening the cocoa crops, they may even lose the chocolate franchise.
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