The latest "insight" was offered on Monday by Canada's National Post which said, well, precisely nothing. Here's an example from the opening paragraph: "In one generation, gold has moved from being the centre of the monetary system to being the ultimate contrarian symbol." How the heck can you say that if your headline reads: "The shine has gone off gold: safe haven status lost"? It's utterly meaningless.

But this is what has me ready to smash glass: "In parts of Asia, silver and gold still have monetary appeal, but the power of gold has been weakened considerably. Central banking changed the popular notion of its value. Now, faith is placed in the ability of the banks to protect the value of money."

It is beyond asinine; unbelievable that this is what passes as acceptable copy for Canada's premier business publication. Canada; of all places. Hopefully the mining suits from Bay Street didn't nod in agreement before turning the page.

The logic of the gold defeatists goes something like this: apparently gold was supposed to rise $500 an ounce on September 11 and, because it hasn't, its safe-haven (i.e. money) role is now worth nothing more than an obituary.

To all the insta-pathologists, check the patient's breathing and pulse before you reach for the nostrums of latter-day Keynesian and Friedmanite infallibility. Pictures tell the story best. What premium is lacking here and perhaps someone can explain the obvious prescience?

Here's the bottom line. It's going to be extraordinarily difficult for any security to beat gold this year. Hoowuddathunkit

Article reprinted with permission and compliments of: http://www.theminingweb.com.