Sunday, June 7, 2009

Joe Weisenthal Hasn't a Clue When It Comes to Gold

I shouldn't limit Joe Weisenthal's cluelessness to gold. See here and here, for examples, of other Weisenthal confusion. But, his nonsense about gold requires special mention. The headline to Weisenthal's comments say it all: Why For All Its Hype, Gold Has Yet To Soar.

Ah Joe, check out this 10-year chart, gold has been climbing since 2002.

Weisenthal writes:

For awhile now, the price of an oz. of gold has been oscillating in the 900-1000 range, which is reasonably high by historical measures, but not all that impressive considering the constant hype and fears over both Armageddon and rampant inflation. Every time it looks set to really break out, it gets slapped backed down again.
This comment exposes Weisenthal's basic lack of understanding of trading fundamentals.

It just so happens that I recently commented on gold trading near $1,000 an ounce. I explained why it is taking some time to break through $1,000 and why I fully expect a huge spike upwards once it breaks through current resistance. Weisenthal seems to be completely unaware of this line of reasoning.

I continue to be amazed that Henry Blodget keeps Weisenthal on the payroll.

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