Silly articles about the price of gold litter the mining news media. Mineweb has degenerated into a kind of three-ring circus that each day delivers up at least three more superficial stories on the price of gold. One article says the price will go up; one says it will stay constant; and one says it will go down. At least nobody can accuse them of a prejudiced point of view.
I suspect the constant stream of stories on the price of gold, is not so much a matter of dissemination of information as a matter of reinforcing preset prejudice. Maybe the articles are posted for people to read as a kind of porn: entertainment for the converted who need a daily dose of bullshit that reflects their predilection for flesh/gold.
It cannot be that the stream of superficial and silly articles about the price of gold serves to inform people to enable them to make rationale decisions about buying and selling gold. Thus we must conclude that journalists write these repetitive articles as a fast way to fulfill an assignment and cover empty paper at least cost. And people read these repetitive articles as mere entertainment–a way of filling up an otherwise empty life of investing.
Today we see an article in Mineweb that represents the ultimate wet dream of the gold investor: gold should be $52,831 an ounce. At that price we can probably take gold out of sea water for a profit! No need to actually mine the stuff from deep in the ground.
I can give no advice on this proliferation of profoundly silly journalism on the price of gold, other than to recommend you just avoid such postings. They cannot possibly inform; and they cease to entertain; and they now degenerate into the realms of nut cases and lazy journalists.
That said, let me direct your attention to yet another article on the price of gold. Here is the link to an article in The Economist of July 10th – 16, 2010 on the price of gold. This article is only for those with clear heads and a healthy scepticism of the constant barrage in lesser press outlet on the price of gold. For example, the article concludes:
As long as the world economy remains uncertain and investors fear inflation and sovereign default, gold will keep its allure. Eventually, however, the price will weaken: it is even possible that the recent slide to below $1,200 marks the turn. And investors may look back on the bull run of 2009-10—or 2009-11—with the sort of wonder that humanity has too often reserved for the yellow metal itself.
