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Gold is Always Bullish ... Almost

A new article from CNN has, quite ignorantly, questioned -- or, well insinuated -- that Ben Bernanke may have "killed the gold rally" with his manipulative actions and speculations.

However, the fact is that gold, as an asset, will always be a bullish commodity. For the simple reason that it is a stable investment which has no true depreciation index to speak of.

That Ben Bernanke recently hinted to a draw-down in Quantitative Easing -- or QE3 (a preferred means of infusing more baseless, fiat currency into the market) -- only produces a slight hiccup on The Street. Primarily because traders do not, as a rule, consider gold to be a volatile asset. Even when its value is determined by the power of the currency it is purchased with.

Most important, in the world of investing, is understanding the nature of any particular stock's "quality reserves", so to speak.

In other words: how the goods or services will actually perform in the real market. And most importantly, a softening market.

While it is certainly true that many investors are seeking short-term, high-risk, and thus high-yeild investments -- turning the confetti strewn, trading floors into high-stakes casinos -- the true nature of investing is just that; investing.

Not gambling. Nor even a game of speculation or chance.

Investing is more of a poker game. One of strategy and patience. Steady nerves and steel will.

One needs to know how to buy and sell in relation to election cycles, seasonal prerogatives, long-term growth and decay, evolving interests, progressive maturity, resource allocations and technological advancements. As well as when to purchase what from whom, and how much to liquidate, to where.

Simply buying low and selling high is a dynamic strategy rich in an artery clogging, horder mentality that cultivates -- and rewards -- deception. While simultaneously devoid of the static nourishment of constructive, and cooperative, investing necessary to create true wealth in this nation.

Which is why the American economy is so often beset by a Wall Street that is literally swimming in criminality, misfeasance and malfeasance. Idiotic and ignorant predators, blindly gorging themselves on the flesh of consumers, swallowing whole, the market's little fish -- like rotund, spineless sharks.

This is how credit default swaps and interest-bearing risk became some of the most lucrative investment instruments. And why so much of the world's nations are now literally buried by mountains of suffocating debt.

Moreover, this nation's working and middle classes pay huge costs -- as do many others -- in lost economic equity through bloated, real-asset valuations which are irreparably inflated by the added costs associated with trading and speculation. Depletive investment instruments that operate on risk alone, and thus destabilize the markets in both up-swings and down-turns. Insider trading, cultivated by huge profit margins that often hinge on little more than foreign conflicts and domestic discord.

Which is why Bernanke, and a great many big bankers, continue to inflate the principle and debase the currency as their primary economic strategies.

These tactics are not only extremely malleable, and defer costs long enough to avoid any actual risk -- regardless of the risk-associated gains attached to them -- they provide cover for those who may very well be intending to pull the rug out from under precious metals investors.

Because the fact is that, while gold is a stable asset, the Ben Bernanke/Federal Reserve manipulated markets are not.

Furthermore, it would require a particularly collective effort by either a significant number of diversified investors, or a specifically select few of more coordinated ones, to create a false volatility in the gold market -- and thus truly "kill the gold rally".

And since I am certain enough of the nation's investors can figure this one out for themselves, I will not specifically say how.

Posted on Friday, March 2, 2012 at 12:01AM by Registered Commenter[factbat] in , , , | Comments1 Comment

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