THE NADLER RETORT
What Jon Nadler Doesn’t Want You to Know About Gold
May 28, 2009
Gold – since 1999, it’s what I’ve been suggesting that you invest in. It was $255 an ounce then, and few people gave it any chance of competing with stocks, bonds or real estate. It was so “yesterday.”
Back then, adding to the dismal outlook of gold were Establishment naysayers, the most prolific of which was Andy Smith, then of Mitsui Precious Metals. Andy Smith was absolutely scary. He was bright and extremely articulate. And, he was highly connected to the gold cabal – he was one of their most prized disinformation mouth pieces. When gold finally surpassed $300, and then $320, Andy Smith confidently proclaimed that gold was a dead-end investment. When it surpassed $400, Smith predicted that it would eventually sink below $200. As you know, gold didn’t stop at $400, or $500, or $600. It has surpassed $1,000 before its current respite.
My point? Andy Smith is now but a soiled footprint in the history of gold investing. He became the laughing stock of the precious metals investment community. Accordingly, he’s not been heard from in many years now.
Enter Andy Smith II: JON NADLER
Who is Jon Nadler? And, why is he the resident Kitco “disinformation specialist”? You’ll seldom find a negative article about gold investing that he isn’t quoted in, or a negative article about gold that he doesn’t reference. Why? Is he stupid, dishonest or both? You be the judge.
In Nadler’s daily Kitco missives, there are negative gold issues that he hammers with regularity;
“When a major derivatives dealer goes begging for gold, to the ECB, it is very strong circumstantial evidence that not enough physical gold is available for purchase on the OTC wholesale market. Up until now, bearish gold commentators have steadfastly denied that wholesale gold shortages exist. Instead, they have insisted that all shortages are confined to retail forms of gold. Now, when combined with the circumstantial evidence, however, common sense tells us that they are wrong.”
“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”
US Dollar Collapse Imminent?
In case you hadn’t noticed, all recent, vigorous Establishment efforts to keep the US Dollar afloat are now paying diminishing returns. The US Federal Reserve is now OPENLY doing what it had been doing deceitfully for several years; it’s buying US Treasury Bonds that Asians and Arabs are losing interest in buying. (SEE: China Warns Federal Reserve Over 'Printing Money' - China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed's direct purchase of US Treasury bonds.)
The one-year US Dollar Index chart below illustrates the Dollar pump-up that preceded the 2008 US Presidential election. That succeeded in facilitating the dramatic decline in oil/gasoline prices BEFORE the US election – making it a “non-issue” in the election. It was a brilliant move, but had no chance of surviving the “gravitational pull” (massive US indebtedness) sucking the US Dollar down to an eventual worthless valuation. As the chart suggests, the US Dollar is heading back toward pre-election lows, and from there we’ll likely see global fears of a Dollar meltdown come to fruition. Why? SEE: US to Borrow 46 Cents for Every Dollar Spent and Financial Rescue Nears GDP as Pledges Top $12.8 Trillion and The government took on $6.8 trillion in new obligations in 2008, pushing the total owed to a record $63.8 trillion
“Radical Extremist Gold Bugs”
Recently, Jon Nadler has resorted to further insulting serious gold investors by calling them “Radical Extremist Gold Bugs.” Why would a guy, supposedly a “gold analyst” for a precious metals seller (Kitco), resort to ridiculing gold investors by calling them childish names? Folks, this is the way that Establishment disinformation specialists attempt to, “keep the peasants and rabble down.” The audacity of the unwashed masses to not trust what the likes of Nadler have to tell us!!! Such people (you and I) need to be scorned and ridiculed whenever we question the self-anointed "Oracle of Gold," Jon Nadler!!!
Sure, Nadler will tell you that you should maintain a 5-10% investment core of gold. That’s timeless wisdom, the wisdom of our forefathers, not Nadler's wisdom. Where else would Nadler suggest that you invest the remaining 90-95% of your wealth? Why, in the usual “paper” investment holdings that Bernie Madoff would’ve also approved of. Stocks, bonds and even real estate have been LOSERS in recent years and are LOSERS going forward. SEE: After A 'Lost Decade,' Popular Belief In Stocks' Superiority Is Under Fire, and Foreclosure Woes Mount for Those With Good Credit
Nadler does like Gold ETFs, which should absolutely scare you away from such an investment medium!!!
Lately, the higher gold has gone in recent weeks the more shrill Nadler has become. He recently predicted that gold would fall to $850 (or lower). WRONG!! He predicted gold would wallow in a tight range, not surpassing $900, then $950. WRONG!! That’s Nadler’s predictable style. When gold is climbing, he squeals like a “stuck pig,” proclaiming that there’s no logical reason for gold to climb. When gold slips, he’s gleefully insulting all who’ll listen about how he “told-you-so.”
Not content to malign gold investors, Nadler has recently targeted silver investors. In recent weeks, Nadler has been adamant about an impending “over-supply” of silver. Is there an opposing view? Of course, but don’t expect to get it from an Establishment mouthpiece like Jon Nadler. SEE: Largest Silver Players Positioning For Tight Supplies, and 'Silver Is Misunderstood. Silver Price Can Go to $25'
Nadler: “This is Armageddon”
Nadler, long a naysayer about the possibility of the economic calamity that we’re witnessing unfold, now concedes that, “this is the Armageddon that everyone predicted.” Why would he concede that? Because, as he continues that line of reasoning, he sarcastically asserts, “see how normal things are?” Nadler would have us believe that the full extent of financial damage has already been done to the US economy and that almost everything is “up” from here. Is that a deliberate lie, or is it a foolhardy miscalculation on his part? Why does it even matter? Because we haven’t hit bottom yet – we have a substantial degree of downward slide left before “Armageddon” arrives. We likely won't begin to know where the "bottom" is until we find out where the bottom is for the US Dollar.
"The International Monetary Fund has warned of 'worrisome parallels' between the current global crisis and the Great Depression, despite the unprecedented steps already taken by central banks and governments worldwide."
Nadler is predictably wrong most of the time.
Like a broken clock, he’s right twice every day as a consequence of probability.
Soon, Jon Nadler will find himself as irrelevant and as defanged as his predecessor (Andy Smith) now is. In the meantime, if you seek frivolous entertainment, seek out his meaningless daily commentary on the Kitco website.
You can expect gold to ebb and flow its way to $1,200 or more by the end of 2009. There will be dips (profit-taking) along the way, but as this missive illustrates, there is nothing to fear in the current economic climate with gold. Shallow disinformation, not matter how relentless or determined, can’t impede the onslaught of gold.