The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency - Evgeny Fedorov, a lawmaker for Putin’s United Russia party in the lower house of parliament LINKMark Hulbert, who writes a subscription market newsletter and writes for Marketwatch, wrote a shockingly inept article about gold for Barron's online, which was published last Thursday. After I read through his article plus the research reports from which his article is derived, I felt compelled to issue a rebuttal. My thoughts on Hulbert's piece are here: Reasons Not To Buy Gold?
I actually emailed Hulbert and gave him a chance to address my criticisms before I wrote my article:
Your article in Barron's about gold is absurd. Just the opening statement about gold being accepted universally as a "virtue" is way off the mark. Globally investment institutions have less than 1% of their assets invested in the precious metals sector. In 1980 the allocation was 6%. Not really a signal the gold is being universally viewed as a mainstream investmentThat's an example of one of my complaints that he chose to ignore/deflect. Ironically, he pointed me to a section of the longer research report he cites that gave me more ammunition to reinforce my criticisms. Finally, I lectured him on his statement that one of the authors of the report has bought gold in the past - and therefore was unbiased in his views - did nothing more than put lipstick on his pig of an article.
It does not surprise me that Hulbert had no problem getting paid to write a smear-job on gold for Barron's. The fact that Barron's feels compelled to pile on to the extreme negative sentiment in the precious metals sector right now (see the chart below), is a signal to me that the current pullback is bottoming and getting ready to move higher.