Tuesday, November 28, 2006

Editor: What a bunch of crap. I think the wealthy people will be shifting more of their assets into gold and silver to protect their wealth. How about the massive investment demand from ETF's and private investors. For example, GLD has amassed more than 400 tons of gold since its inception. Why is it that Bloomberg seems to see things backwards most of the time?

Gold Drops on Speculation Slowing U.S. Economy May Cut Demand
By Pham-Duy Nguyen
Nov. 28 (Bloomberg) -- Gold prices in New York dropped from an 11-week high on speculation a slowing U.S. economy will reduce demand for the precious metal.
Jewelry demand accounted for 73 percent of purchases last year, according to the producer-funded World Gold Council. Orders for U.S.-made durable goods declined last month by the most since July 2000, a signal that companies are curbing spending.
``The durables are going to put a clamp on gold and other metals,'' said Ron Goodis, retail trading director at Equidex Brokerage Group Inc. in Closter, New Jersey. ``Wealthy people who spend a lot of money on jewelry are going to pull back.'' (read the rest of the story here)