Precious Metals Investment and the Rise of False Contrarian Gurus

							Precious	
  Metals	
  Investment	
  and	
  the	
  Rise	
  of	
  False	
  Contrarian	
  Gurus	
  	
  
	
  
The	
  typical	
  technical	
  analysis	
  based	
  stock-­‐slinging	
  newsletter	
  is	
  written	
  by	
  a	
  
contrarian	
  who	
  denies	
  market	
  manipulation	
  and	
  often	
  ridicules	
  those	
  who	
  attempt	
  
to	
  discuss	
  it	
  seriously	
  and	
  rationally.	
  
	
  
Furthermore,	
  the	
  degree	
  of	
  denial	
  and	
  hostility	
  faced	
  by	
  proponents	
  of	
  market	
  
manipulation	
  theories	
  is	
  usually	
  directly	
  proportional	
  to	
  the	
  amount	
  of	
  evidence	
  
actually	
  underpinning	
  the	
  issue.	
  
	
  
Proving	
  a	
  Negative	
  is	
  Always	
  a	
  Difficult	
  Task	
  
	
  
Of	
  course,	
  proving	
  that	
  manipulation	
  does	
  not	
  actually	
  exist	
  in	
  the	
  financial	
  markets	
  
—	
  and	
  especially	
  in	
  the	
  precious	
  metals	
  markets	
  where	
  even	
  the	
  regulators	
  like	
  the	
  
CFTC	
  have	
  found	
  sufficient	
  cause	
  to	
  investigate	
  such	
  allegations	
  —	
  is	
  very	
  difficult.	
  	
  	
  
	
  
In	
  addition,	
  the	
  fact	
  remains	
  that	
  most	
  newsletter	
  writers	
  are	
  merely	
  traders	
  talking	
  
their	
  own	
  book,	
  although	
  admittedly	
  the	
  most	
  prominent	
  among	
  them	
  can	
  maintain	
  
a	
  powerful	
  influence	
  over	
  the	
  market’s	
  mental	
  space.	
  In	
  recent	
  years,	
  this	
  mental	
  
space	
  has	
  suffered	
  from	
  an	
  excess	
  of	
  horrible	
  sentiment.	
  
	
  
Controversy	
  Sparks	
  Interest	
  in	
  Market	
  Gurus	
  
	
  
The	
  average	
  smart	
  money	
  investor	
  who	
  comes	
  to	
  the	
  market	
  guru	
  for	
  advice	
  or	
  
guidance	
  is	
  sophisticated,	
  wealthy	
  and	
  typically	
  allocates	
  only	
  a	
  small	
  percentage	
  of	
  
their	
  money	
  and	
  attention	
  to	
  the	
  markets.	
  
	
  
Read	
  the	
  rest	
  of	
  the	
  article.