The price of gold drops more than $200 an ounce in December and no one notices.
In the news this morning, a small note that Factory Job hiring is up, for the first time in a decade and that hiring is the highest it has been in 14 years. 14 years - that would be the last time a Democrat was in Office.
Funny how that works.
Funny how the media says it in an "Oh, by the way" kind of thing, instead of "OMG! Can you BELIEVE this! The recession is ending!"
Unemployment numbers are down, growth is up, inflation is still low, interest rates are low, our exchange rate with the Euro is rocking - the U.S. seems poised to lead the world out of recession. The rest of the world seems poised to enter it.
Every bit of good news hammers minerals.
But a funny thing - the media only likes to report sudden rises in Gold prices - they rarely report the fall.
What is weirder is that the media loves to talk about the Dow "plummeting" but they rarely talk about it going up (as it has in the last few weeks).
The simple reason is that sudden market changes are "news" while slow, long-term trends are not.
Guess which is more relevant to you, the investor?
Yea, whatever CNN is NOT reporting on.
The eye-candy news is rarely of any use to anyone.
Will gold continue to drop? As the economy recovers, yes. And as it drops, more people will bail out of it, as they realize that gold pays no dividends, gold has no new products to sell, gold has no growth potential, and gold is being dug out of the ground every day, increasing the supply.
Gold is not an end, but a parking place for money. As an investment, it is a dead-end. And all the gold bubbles burst, over time, as people realize this.