– Smart Money acknowledges its big miss with GATA and gold (ZeroHedge, Aug 25, 2012):
Submitted by cpowell on 12:42PM ET Saturday, August 25, 2012. Section:Daily Dispatches
3:40p ET Saturday, August 25, 2012
Dear Friend of GATA and Gold:
Founded in 1992, Smart Money magazine, a product of The Wall Street Journal, is going out of business with its September issue, which includes a review, titled “Hits and Misses,” of what the magazine, its editors, and writers have gotten right and wrong in their 20 years. Perhaps their biggest miss is gold, as signified by the magazine’s recapitulation of its June 2004 interview with GATA Chairman Bill Murphy, who remarked that the monetary metal, then priced at $422 per ounce, would double.
“That’s not what we predicted at all,” Smart Money’s Russell Pearlman reflects. “‘History, at least the past 200 years or so,’ we wrote, was not on the side of gold lovers. While there was perhaps some short-term money to be made in the precious metal, ‘the bull market for gold will not last and anyone making gold the cornerstone of his or her investment porfolios is making a serious mistake.’ New York fund manager Chris Davis agreed with us at the time. Gold, he said, wasn’t an ‘earning asset’ (one that paid dividends). It was a psychological asset. ‘I just don’t get it,’ he shrugged. Neither, it seems, did we.”
GATA explained it to Smart Money then and since then has been explaining it to everyone else with eyes to see and ears to hear. But while you can lead a financial journalist to a central bank, you can’t make him ask the right questions.
A photograph of Smart Money’s acknowledgment of its mistake about gold is posted here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.