Gold: Wall Street’s Most Dangerous Myth

By Andrew Gordon

Stocks falling I understand. It’s not like it’s all blue skies out there.

Commodities falling makes sense too. Buying from Asia hasn’t picked up yet, and demand is getting softer in Europe and the US.

And I wouldn’t expect the “Fear Index” to go anywhere but up. Here’s what the Volatility Index (VIX) chart looks like compared to the S&P 500 for the last three months. (VIX is blue line, S&P is red). Its up 150%.

All this stuff is understandable.

But when economies tumble…fear rises…and hard assets like oil and gas drop, one thing should absolutely be going up.

And that’s gold.

But it isn’t. It’s going down. Take a look at gold over the last month…

From a high of $1,900 gold has fallen by 14.5% to $1,624.

This is not what the “Gold Bugs” say should be happening.

They say that when everything is crashing around you, gold is the ultimate sanctuary investors flock to.

Right now we’re on the verge of seeing several possible sovereign debt defaults in Europe. Global financial institutions are dangerously exposed to one another. And US banks aren’t immune to this contagion (more on that in the article below).

Believe me, if the French and German banks go down, American banks will lose tens of billions of dollars.

And the dollar is backed by an incredibly weak economy right now. Only the plight of the euro is preventing the dollar from tanking.

The price of gold should be soaring, not sinking.

Because gold, they will tell you, doesn’t depend on turning on a printing press (and we know that is also happening at a record pace).

And it’s the only place you can hide from bankrupt borrowers, dangerously exposed banks and weak paper currencies.

So, what in the name of Jim Rogers, is going on here?

One of the World’s Richest Gold Bugs Says Watch Out for the Bullion’s Falling Prices

Jim Rogers, perhaps the world’s most famous gold bug, must have an explanation, right?

Of course he does. Rogers says that gold is “overdue for a correction.” Why? It’s been up 10 years in a row and this year would be the 11th straight year.

Rogers says that