05/03/10 Tampa, Florida – John Nadler at Kitco.com had a recent column with the terrific title “Who You Gonna Call? Mythbusters!”
When I read that, I began to sing the song to myself! “Something strange, in the neighborhood. Who ya gonna call? Mythbusters! Something weird, and it don’t look good. Who ya gonna call? Mythbusters!” Wonderful!
Of course I was impressed with the cleverness of Mr. Nadler, as it is perfect that he would use a line from Ghostbusters theme song to introduce a commentary with a gold theme and about the whole stinking economic situation, and I wish I had thought of it, especially since I now can’t get the theme song out of my head. “Who ya gonna call?” Hahaha!
My happy mood was briefly spoiled by a moment of paranoia when I thought that he was referring to me and how I am a big fraud just because I don’t know what I am talking about, and I stopped singing long enough to sarcastically think of a rebuttal, probably in the, “Where the hell have you been, Nadler? Everybody already knows that I am an idiot! Hahaha! The joke’s on you!” vein.
Thankfully, he was not referring to that at all, but instead is about one of the “myths”, which is that “gold is in a bull market”, as he cites as evidence “an online opinion poll conducted by Commodity Online, a majority of the respondents have hinted at a possible fall in gold prices in the near future, and better earning opportunities will come knocking on the door.”
And note that this was no absurdly small sample size, carefully crafted to confirm a preconceived notion, like that infamous time when I deduced, from a sample size consisting of a single incident, that all American supermarket managers were idiots after that one time when I was particularly incensed at inflation in prices and demanded to see the manager at the grocery store.
With a flourish, I pointed to my register receipt and commandingly said “$147.53!”, whereupon I turned and pointed dramatically to the pitiful few bags of groceries in the shopping cart before continuing, in a voice both loud and irritating, “You’re charging me $147.53 for that little pile of food, you little moron? This is an outrage! You and all your filthy retailing ilk are raising, raising, raising prices until we scream in outrage, and which shows, once again, how you had better have gold and silver to offset the inflation in prices that is killing us all – killing us, I tells ya! – as a result of the government’s gargantuan deficit-spending and the Federal Reserve accommodating that insane amount of borrowing-and-spending by, unbelievably, creating the insane amounts of money with which people, mostly the Federal Reserve, can buy their stupid bonds!”
Then I asked him, pointblank, “Are you buying gold, silver and oil? Are you? Huh? Are you, punk?”
Well, he just stood there with his eyes bugging out, looking at me, speechless, which I took to be a “no”, which is why I extrapolated, as I said, from this one sample that all managers were idiots, and why I said, “Then you’re a moron!”
I later realized I was wrong in having such a small statistical sample, and I was wrong in calling him a moron, because the prices are not his fault, and thus it is wrong of me to blame him, and the only reason that I blame him is because the Federal Reserve won’t talk to me and wife and kids are whining, “Blame somebody else for awhile, because we are sick of it!”
No, this was a huge sample, and was “A sample size of 21,600 respondents selected from across the globe”, and it came up with the surprising fact that “93%, or 20,100, of the total sample size opined that there would be a fall in gold prices due to a recent upbeat mood in the global equity markets.” Wow! 93%!
Now many of you may look at this and say, “Hahaha! The idiot Mogambo is wrong about the necessity of buying gold, and probably everything else, too, and this proves he is an idiot just like we have all been saying all these years!”
To these 20,100 people I reply that their forecast is, seemingly paradoxically to them, actually comforting news to me in my extreme, yet otherwise normal (considering the circumstances) opinion that We’re Freaking Doomed (WFD), and that gold will soar as the dollar, and all paper currencies, fall in purchasing power, thanks to such massive over-creation of money, in that it is an inescapable Cold, Hard Fact (CHF) that the majority of investors investing in a market must lose money so that a minority of investors can make a profit, and they will lose either nominal money (because their shares went down in price), or by inflation (in that their shares may have gone up by double, but the general prices of everything went up by triple), or both. Probably both.
And so I stand up Proud And Loud (PAL) to say, with a wry smile of Mogambo Arrogant Self-Assurance (MASA), that if you are not buying gold, silver and oil in response to such monetary and fiscal insanity, then I not only laugh at you, but Laugh In Scorn (LIS) at your screwing up something so easy, so easy that one is compelled to squeal girlishly in delight, “Whee!”
The Mogambo Guru
for The Daily Reckoning
The Mogambo Guru
Richard Daughty (Mogambo Guru) is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the writer/publisher of the Mogambo Guru economic newsletter, an avocational exercise to better heap disrespect on those who desperately deserve it. The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning , and other fine publications. For podcasts featuring the Mogambo, click here.
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Let me see if I understand this correctly…
93% of experts predict gold will go down in price later on.
Four years ago, 97% of experts predicted that the housing market would go up, and keep going up, up, up forevermore.
So much for experts always being on the right side of the trade.
After reading many of Nader’s posts over the years it is easy to declare the following-Nadler is a gold bear in gold bear’s clothing.
All Hail Mogambo!
Nadler is certainly a bear, but he is helpful as a devil’s advocate. I read him just for the sake of reading an opposite opinion on bullion. This is a guy who prefaces a prediction by Michael Crook (HA!) that gold with hit $800 with the following:
Warning: not for the squeamish.
Mr Crooks is SHORTING GLD, specifically by January 2012. He’s either a complete idiot, or he knows something the rest of us do not. Even Bill Gates doesn’t look further ahead than a year, so I figure this guy is full of hot air. Still SHORTING as far ahead as 2012. Sheesh. Only Nadler would enjoy stuff like this.
Nitwit Nadler as the group at Metropole call him. I read him just to get my blood pressure up. If you have time (your online aren’t you?) go to youtube and look up some of his predictions. This guy has been wrong for years. But maybe just maybe he’s secretly gathering more and more gold by talking it down. Forget what I said, this guys a genius!
Nardler… wrong wrong wrong for years. I called him out on it and he was nearly crying in his response that “Just because he wrote for a precious metals syndicate didn’t mean he had to be a permabull for gold”.
What a ninny. He quotes obscure and / or frequently incorrect sources as gospel and never just admits that he’s wrong wrong wrong and has been for years. Perhaps he’s just a loony shill for the Fed.
Click the ignore button, MoGu.
There are 2 possibilities, Nadler either has a pair of telescopic eyes or he has to put on a quality contact len -10.
Yes, strength of currencies may rest on ‘relative strength’ which they are in such dilemma. Let A, B, C are all very poor tennis players. But A is just slightly stronger than B and C. In every game A beat B and C by marginal 1 or 2 points. In the eyes of the majority A is still the best player in the world, despite the fact he is actually a lousy player. ‘A’ has the relative strength over his opponents. He gets the prize and the trophy.
Same goes with currencies. Same goes with Nadler. He thinks that will happen. But, that is only amounting to what he ‘thinks only’. Right? Are those fiduciary issues floating on a layer of hot air? Would the monetary system implodes under the sheer weight of the money supply?
There is no miracle. Miracle is only for those who pocket a few pennies at the expenese of the the greater picture, the whole economy. China is no exception. Underneath, the reign of Jiang Kai Shit is repeating. What could you expect from the same group, who even bundle their daughters’ beautiful legs to the size of chopstick? Such mentality! Could you speculate a real, lasting growth from such ‘zookia’. For a dollar worth of job done, they will forward a 100 dollars claim. I let you work it out.
Sorry, folks, so much bull shitting for today.
I don’t know about anyone else but I routinely use John Nadler at Kitco.com as a contrarian signal. Each time he builds up for the big fall gold bulls ahead another 15 – 20%. So, given the rising level of warnings from his daily I would say that, even if gold does fall some in the next few weeks, it will be 15 – 20% higher within a few months.
Question – when you say buy gold, do you mean take actual possession of the metal as in buying minted rounds in various denominations, etc? Thanks.
You can’t go wrong taking possession. Just make sure you don’t pay too much over spot. Shop around. If you are just buying 1 oz gold coins with no numismatic value a coin is a coin is a coin.
I read Nadler everyday. While it is true he has been wrong for years, as a gold bug, I was wrong for years too. I think it is good to hear the other side.
JRod.
Mogambo,
I really enjoy reading you and buying gold stocks.
Cosmo Hippie
i didn’t read what i am sure is a brilliant article but when i saw nadler mentioned in the first paragraph i skipped it knowing that nadler is the flibbertygibbet, gadfly, and f-tard of the precious metals world….did i mention douchebag?
Hi JRod,
Take it easy. You accumulate gold metal as you go along. One piece at a time. Just like a scrap iron metal collector, who collect scrap for onwards recycling.
In doing so, you will surely be getting richer and richer.
Haha !
I remain bullish on gold because of the Fed’s efforts to prevent deflation, and I recently came across this site that provides a lot of news and analysis on gold stocks, which I think will finally begin to lead gold bullion in the next stage of the bull market:
http://www.goldalert.com/