"Some days it takes me about 5 or 10 minutes before calling “bull” on something which gives me a topic to write about. Not today. Today I turned on CNBC to immediately hear “Has gold lost its luster?” and “Usually when gold changes direction it stays that way for 20 years or more so it might be 2030 before we see $1,900 again.” Really? Are you people complete idiots? 20 years? What, 20 years to the downside but this bull market is a 13 year abortion? Forget about “time,” why has Gold rallied to the current levels in the first place? Fundamentals?

Surely it cannot be the fundamentals of gold. Definitely not the fact that global supply has not met global demand in over some 20+ years. It couldn’t be because the Fed has printed wildly and blown its balance sheet to oblivion. 20 years? Do you really believe the U.S. Treasury will even exist in its current form by then? Oh yes, I know, gold is down from where QE 3 and 4 were announced so let’s extrapolate the move. “The move” which by the way is being caused by high frequency trades of paper contracts with no gold available for delivery. “The move” which the CFTC does nothing (wink wink) and cannot find any perpetrators who “make” the price in the paper markets.

Relax people, this must be the 20th “bear market” for gold and silver in the last 10 years. Do you remember the last campaign? I think they called it “the death of gold.” I checked on mine and believe it or not… it’s still shiny! No wheezing, coughing or clutching its chest in pain… nope, it’s still there. …And no matter what Washington, Wall St., CNBC or even Mayor Bloomberg want you to believe or legislate… it’s still MONEY!" .....

http://blog.milesfranklin.com/idiots