STAFF NEWS & ANALYSIS
Bloomberg Article Bashing Gold Based on Phony Jobs Report
By Daily Bell Staff - August 15, 2016

Gold Losing Appeal for Investors Retreating From Rally … ‘People don’t believe in the gold rally,’ Holmes says. Investors are growing more skeptical of gold’s lasting luster. Hedge funds and other speculators cut their wagers on a bullion rally for the fourth time in five weeks. As traders tire, the metal’s 30-day historical volatility has dropped to the lowest since November. Open interest is also on the decline. – Bloomberg

Here comes Bloomberg telling us gold (and silver) are moving down.

That’s the implication anyway. Bloomberg rarely has something good to say about precious metals. The news service represents and endorses a technocratic version of the world.

Bloomberg’s vision is one of a world run by vast corporate interests and controlled by an elite group of bankers. These individuals manipulate money and commerce as they wish. Gold and silver only interfere with their control.

More:

After stunning gains to start the year, bullion has started to lose its momentum. Prices are down about 1 percent in August as the U.S. economy picks up steam, damping demand for a haven.

American payrolls surged in July and wages climbed, pointing to renewed optimism that the jobs market will sustain consumer spending in the second half of 2016.

“People don’t believe in the gold rally,” said Frank Holmes, who oversees about $700 million as chief executive officer of U.S. Global Investors in San Antonio, Texas. “You can see this last dip in gold, the employment numbers are so good. When there is good economic data out, rates rise and the price of gold goes down.”

This argument is based on a “recovery” in the US economy. But there is a good deal of dissension about this so-called recovery.

Libertarian politician and commentator Ron Paul recently posted an article entitled, “The Phony Job Recovery.”

A bombshell jobs report [has just been released], with headlines exclaiming that the US economy added over 250,000 jobs in July, far in excess of any forecasts.

The reality was far more grim. Those “jobs” weren’t actually created by businesses – they were created by the statisticians who compiled the numbers, through the process of “seasonal adjustment.”

That’s a bit of statistical magic that the government likes to pull out of its hat when the real data isn’t very flattering.

It’s done with GDP, it’s done with job numbers, and similar manipulation is done with government inflation figures to keep them lower than actual price increases.

Ron Paul goes on to say that “In reality there are a million fewer people with jobs this month than last month, but the magic of seasonal adjustment turns that into a gain of 255,000.“

It is disconcerting that Bloomberg doesn’t mention this in the article. It’s an important point and the reader should be informed that the numbers Bloomberg is quoting are government extrapolations.

Paul also has questions about the kinds of jobs that were created, as many seem to have been created in government and health care.

Also, large parts of the supposed growth were in areas of “temp jobs and leisure & hospitality (i.e. waiters and bartenders).”

Paul would like to see significant growth in private sector, non-service jobs. That’s now what the jobs report shows.

So Bloomberg’s analysis is necessarily flawed. It looks more like Bloomberg took numbers that were massaged by the administration to put the best face possible on a non-existent recovery and used them to bash gold.

That’s the way the news media operates these days. Articles are more likely to express an opinion than to provide an honest assessment of facts. We commented on that just yesterday, HERE.

Obviously, we have a different opinion than Bloomberg regarding gold and silver. We’ve written that monetary policy remains loose around the world and that includes the US. Janet Yellen was going to raise rates several times in the US in 2016. She hasn’t raised them once.

We would tend  to doubt that gold and silver will crash throughout the rest of 2016 as Bloomberg seems to imply. There may be volatility, even considerable volatility, but unless there is a substantial monetary shift around the world the fundamentals will remain in place to drive metals prices higher against the dollar.

The current stock market rally is a monetary one, not drive by an industrial resurgence. Bloomberg wants to use the current jobs report as evidence that industry is expanding again in the US but that is evidently not the case.

Our optimism regarding gold and silver encouraged us to take on our first-ever sponsor earlier this year. Investing in gold and silver projects can be risky and one needs to do appropriate due diligence.

However since we began to promote the opportunities available at Golden Arrow, silver has had an upwards move along with gold. Golden Arrow partner Silver Standard  has announced it is working toward a new mine by the end of the year with Chinchillas, a Golden Arrow subsidiary.

Golden Arrow informs us that “the application for the mining permit has been filed.” You can see interviews with Golden Arrow executives HERE and HERE.
Those who wish to investigate silver mining properties may want to consider the Chinchillas project. You can see the Golden Arrow website HERE, which contains information on Chinchillas.

Golden Arrow Contact: Shawn: 1-800-901-0058 or 778-686-0135.

Stock Symbols:

Canada: GRG
US: GARWF
Frankfurt: GAC

GOLDEN ARROW RESOURCES is a sponsor of The Daily Bell under a new marketing program. The company welcomes your interest and support. Please consult DB’s disclaimer before making investment decisions.

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  • Praetor

    People don’t believe in the Gold rally!

    Well, it comes down to ‘who and what’ people. If he (Holmes) is talking about the people who love paper, of course. They love paper because it is lite and easy to carry, which make them a bunch of lazy bums. To them lifting something heavy is way to much ‘WORK’.

    On the other hand, those who enjoy ‘WORK’ have no problem with thing that have some weight to it. The weight gives them a sense of value that can be stored for a future date, and has a benefit for themselves and others.

    Well, it comes down to which is more rewarding and profitable in the end!!!

  • Otto

    Proving once again the unadulterated bias of Coinflation.

  • Rastindian/FatShiva

    Gold/Silver in my opinion are long term trending commodities. To base its rise or fall with respect to one or more set of QE’s is foolishness. They still look solid fundamentally speaking.

  • Lynn Carroll

    In today’s society, it would be silly to be using gold dust, bars, or nuggets to conduct everyday commerce. It isn’t a matter of being heavy as much as being bulky and awkward. It’s kind of hard to carry around hundreds of dollars in gold without everyone knowing what those bags and pouches contain. You are a walking ATM machine for the bad guys. We don’t even have to carry money at all what with the advent of the biggest rip-off the bankers have pulled on the everyday person . . . the ubiquitous “credit” card.
    It’s just as silly walking round with so-called money in the form of IOUs from the government backed by nothing but a promise that isn’t possible to keep. There is no gold in Fort Knox, we’ve spent it all just trying to keep up with the interest payments on money that we’ve borrowed from China. They’ve got all our gold reserves from Fort Knox.
    If China, Japan, and the Pacific Rim nations were to suddenly go to the Gold Standard, we would be the paupers of the world, worse than India at the turn of the 19th Century, and far worse than the 3rd World Banana Republics of the Southern Hemisphere.

    • Modern Alchemy

      I agree with a lot of what you say, BUT it IS NOT HARD to walk around with hundreds of dollars worth of gold. A 1/4 oz gold eagle is the size of a Washington quarter and contains $335 of gold at today’s price. I don’t know anyone who would argue that carrying 4 quarters on their person would be big and bulky, or require bags and pouches. 4 quarters would be $1340. But if you were carrying that much gold for transactions you would do well to have some silver to “make change” with. Gold is the money of Kings, Silver is the money of businessmen and commerce, copper is money of the poor, DEBT is the money of slaves!

  • John G

    This little boy is nothing but a little fish… 700 million overseen! The billionaires all seem to agree that if you do not own gold you neither understand current conditions nor history. Just a parrot repeating the daily slime.

    Precious metals represent dozens of industries in its sum total of costs: base metals, energy, heavy equipment, transportation, regualtory exspense, refining, delivery. These costs as well as the rarity and utility are all represented in the metals. All of which have been suppressed with all the might the colluding central bankers to date.

    Precious metals have no direction to go but up. Distortions, negative interest rates, and manipulations are the last signs needed to see the system is rotten.

    The new game becomes the sovereigns buying each others equities. A type of SDR with a packaged secret formula??

  • JDole

    The mainstream financial media disparaging gold is often a “bullish” sign and has been so for many years.

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