A Sad Day, So Buy Gold

by JDH on February 19, 2011

I have long advocated the purchase of precious metals, like gold and silver, and precious metal stocks, as an insurance policy against the madness that is this world. It’s not just the world that’s mad; it’s also the media, that continues to report their version of the truth (as opposed to the actual truth).

For a year now we’ve been reading the stories about how everything is getting better, and the recession is long over. Anyone with any daily activities in the real world knows that this is not the case.

A huge bookseller, Borders, just went bankrupt. Shopping malls across the country will lose a major tenant. How can this be good news?

Sadly, that’s the least of our problems. Far more worrisome is the biased reporting we are subjected to every day. Case in point: Egypt.

Giddy reporters reported from Cairo that a friendly, jubilant group of happy Egyptians camped out for 17 days until the dictator resigned. There was joy in the streets. All is well.

Alas, the truth is much more ugly than that. It wasn’t a jubilant mob. It was a gang of thugs, intent on destruction, as revealed in the tragic case of Lara Logan.

Lara Logan is the Chief Foreign Correspondent for CBS News. While reporting on the “peaceful protest” she was repeatedly sexually assaulted by thugs yelling, ‘Jew! Jew!’ Apparently a gang of 200 thugs abducted her and assaulted her for 30 minutes before she was rescued.

I’m not naive. I realize that sexual assaults happen every day here in North America. But I have never heard a story of a famous reporter, reporting on an event, being abducted and raped while reporting on a major story here in North America. A rape by a gang of 200 is not an isolated incident. It appears to be endemic to Egyptian society.

Travel industry stories from 2008 detail how sexual harassment is simply standard practice in Egypt. Sadly, nothing has changed.

Am I saying that Egyptians are evil, and Americans are saints?


In fact, I’m making the point that CBS News is evil as well, because it was not CBS News that broke the story of the abduction and sexual assault of their senior correspondent. I was watching CBS News last Sunday night as they reported on the joy of the Egyptian Google employee who was released, and how social media was changing the world. They failed to mention that their own reporter was recovering in hospital.

How can you do a story on Egypt and forget to mention that your own reporter is in the hospital? Easy, I guess, if you aren’t really reporting on the story, but instead are creating the story of rebirth in Egypt. And that’s the problem. The media doesn’t report. They create.

Congratulations to the Boston Herald and other outlets for reporting the truth.

The truth is that we are in a mess, despite media reports to the contrary. Gold, silver, and other precious metals, and other real assets, will be the only store of value as we race to the bottom. So, I’m continuing to hold my positions in the following precious metals stocks:

AEM.TO – Agnico-Eagle Mines Ltd.

AXR.TO – Alexco Resources Corp.

ADM.V – Andina Minerals Inc.

CEF.A.TO – Central Fund of Canada

FR.TO – First Majestic Silver Corp.

FVI.V – Fortuna Silver Mines Inc.,

K.TO – Kinross Gold Corp.

G.TO – Goldcorp Inc.

SLW.TO – Silver Wheaton Corp.

SVM.TO – Silvercorp Metals Inc.

I’m also reviewing various uranium stocks, and more junior precious metals stocks; I’ll have more on that next week. For now, batten down the hatches, and prepare for the continuing storm.