Top Bloomberg analysts predict that 2011 will be another banner year for gold investment and The Wall Street Journal reports that gold market prices could go up another 30% this year. Posted by Adam King on February 21, 2011
Beware of where you get your gold market news.
February 21, 2011 – Top Bloomberg analysts predict that 2011 will be another banner year for gold investment and The Wall Street Journal reports that gold market prices could go up another 30% this year. Ever wonder why the preponderance of scholarly analysis paints exactly the opposite picture?
The Huffington Post thinks it’s because “the Federal Reserve . . . so thoroughly dominates the field of economics that real criticism of the central bank has become a career liability for members of the profession.” Academia lives by the rule of “publish or perish” and the Fed holds tremendous influence over what gets published in the top journals.
HuffPost found that “84 of the 190 editorial board members” of seven top journals “were affiliated with the Federal Reserve in one way or another.” Even more disturbing, at the Journal of Monetary Economics – the premier career maker for rising economists – “14 of the 26 board members are presently on the Fed payroll.”
So forget the academicians. If you want to know the weather, look out the window. Jerry Robinson, well-known Christian economist and author of Bankruptcy of our Nation, a book in which he predicted the current crisis in global economics, gives three solid reasons why the gold market prices will continue growing:
1) “Gold is a beneficiary of poor monetary policies.” Enough said.
2) “In 2010, gold demand gold soared by 20% while gold production rose by 3%.” A major factor of that growth was China’s 500% increase in gold imports despite their being the world’s largest gold producer, reports Robert Lenzner, contributing Editor for Forbes magazine. Surprisingly, it was ordinary Chinese citizens driving up the demand.
3) “The total amount of retail and institutional investments held within gold comprised a microscopic .8% of total global assets.”
Nothing fancy and nothing new. Just darned good reasons to stand strong in gold investing.
Senior Staff Writer – Certified Gold Exchange