Recently there has been a lot of news about “fake news”. Apparently, not everything you read on the internet or see on television is true. As a result, you have to take control, see through the subterfuge, and make your own decisions. In short, you must be a cognizant adult with a fair amount of cynicism these days. How inconvenient, right? In addition to other types of fake news, there is fake gold news. The rest of this article is an example of fake gold news.

Essentially, two news outlets produced two different stories surrounding the same set of facts. The stories are nearly identical, give or take one major difference. If you were to read one version, nothing is really going on and gold is almost irrelevant, sort of. Conversely, the other article raises questions about the legitimacy of the whole gold market without attacking gold as only having a current role in economics simply because it is “trustworthy”. Read my article. Then read the article published by Sputnik News. Finally, read the article published by the New York Times. Decide for yourself what is fake gold news and what isn’t.

Fake Gold News : The Story.

Both articles report on the same story. The New York Times reports that during the Cold War, Germany moved much of it’s gold reserves out of the country. Germany did so because if Russia were to invade, Russia would most definitely seize the tons of precious yellow metal. In 2012, an audit done by Bundesbank, the German central bank, found irregularities in the accounting processes. Some gold was thought to be missing. Germans were shocked to learn that so much of their nation’s gold was stored not only New York but also in Paris and London.

300 Tons Is A Lot Of Gold.Political outcry ensued, and the Bundesbank prepared plans to essentially repatriate enough gold so that half of the German gold reserves would actually be in Germany. This plan would include returning 300 tons of gold from New York by the year 2020. Both the New York Times article and the Sputnik news article are clear about the fact that the delivery was carried out ahead of schedule. The main difference is the fact that the Sputnik article mentions the fact that the Germans did not get back the same gold bars that they sent out for safe and secure vaulted storage. We will look into what this may mean at the end of the article.

Fake Gold News : A Hit Piece On Gold.

I get it. The New York Times is in New York. New York is a financial epicenter of paper investment products and digital money transfers. New York doesn’t make money storing gold, it makes money moving paper. For this reason and others, many dollar-based investment papers and magazines like to bash gold and those that own it. This particular piece uses a unique twist; first belittling gold and then assigning it importance. This can deliberately leave the reader confused about gold, so confused they won’t consider owning it and opt for paper investments instead because they are “simple”. Let’s take a look.

First, comes this quote from the article written by Jack Ewing for the New York Times:

“Whether gold matters anymore is questionable in an age of Bitcoin and digital payments. Even paper money is losing importance.”

But, in the next paragraph, the author cedes that “nostalgic Germans” find solace in the fact that the “embattled euro is underpinned by something tangible”. Honestly, I don’t know if this even makes sense. I don’t know that German gold would ever be used to back the euro in a crisis situation. Carrying on, in the next paragraph, the author quotes a bank economist who states that gold’s value is solely based on the fact that it is trustworthy.Below is the exact quote:

“From a scientific point of view you could say it’s no longer necessary,” Jörg Krämer, chief economist at Commerzbank in Frankfurt, said of the gold reserves. “However, credibility is very important. Gold is perceived as trustworthy. Therefore it still plays a role.”

Fake Gold News Flip-Flop?

By reading this far in the New York Times article, you might think gold has no real value or current use, but just a few sentences later Ewing explains why Germany is leaving 50% of it’s gold abroad:

“The rationale for leaving some of the gold in New York and London is that they are major trading centers, and the gold could be deployed quickly if the euro collapsed or some other catastrophic economic event occurred. So far, the only gold sold by the Bundesbank has been in the form of commemorative coins.”

This paragraph shows the true power of gold. Gold is tangible wealth and gold is a trusted currency that can be used to help mitigate financial and currency disasters.The paragraph ends, however, saying that so far the gold has only been useful for making memorabilia coins.

The Gold That Germany Received Back From The US Was Not The Same Gold Germany Sent Over For Vaulting.Believe it or not, the author then goes on to quote the esteemed and knowledgeable Jim Rickards about the German gold repatriation. Rickards understands the world gold trade and currencies. Rickards finds problems with so much gold being taken out of circulation in a market with such high demand and says that this move could destabilize the world gold market. Ewing then makes the following statement:

“While gold’s value is mostly sentimental, Mr. Krämer of Commerzbank acknowledged that it still exerted a powerful influence on the human imagination.”

Fake Gold News = Buy Real Gold

Here is a quick takeaway. You decide which article is real news and which is conjecture, obfuscation, inveiglement, and opinion. But, also think about this fact for a moment. In 2012 the United States government knew it had to return 300 tons of gold to Germany. In 2012 gold prices higher than $1850 per ounce. Then, in 2013 gold prices plummeted to $1200 an ounce and traded in a rather narrow range for years to come as the US purchased 300 tons of gold to replace the original German gold.

Something is obviously going on here. But, what you really need to know is that real gold is more valuable to you than fake gold news. If you want to have a real and truthful discussion about protecting your wealth, call ITM Trading today at 1.888.OWN.GOLD.