Misleading Gold Headline of the Day

by: Tim Iacono December 03, 2008 | about stocks: GLD    

Tim Iacono

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It's natural to wonder about the real utility provided by editors and others in the publishing business who, for some reason, feel obligated to alter the headline supplied by the author of an article for one reason or another.

Apparently, they receive some kind of special training to write headlines that make for a more consistent overall look and feel in a publication, but, sometimes they just entirely miss the point. Such was the case in this story about gold at Commodity Online.
IMAGE The headline apparently derived from this paragraph:


According to a research report from Kedia Commodities, gold is headed for an annual drop after seven straight yearly gains. Precious metal is being so far steady today in the markets as worries persist and expand due to the deepening of the global recession that is eroding to a further extent the appeal of commodities including the gold of course.

Yes, the English language looks to be a challenge as well for this publication that I believe originates in India.

As for the price of gold, any decline this year would be the biggest drop in seven eight years (apparently math poses its own set of difficulties), simply because gold has been about the only asset class to post gains in each of the previous seven.
IMAGE

Despite what the folks at Kedia Commodities might think, a negative result for gold this year is anything but assured. The yellow metal is down about six percent in 2008, $52 below where it began the year, and December is almost always a favorable month.

Wouldn't it be funny if, when all is said and done in 2008, gold is one of the handful of assets posting a gain for the year?

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This article has 4 comments:

  •  
    Dec 03 08:57 AM
    The headline should have read, "Gold headed for FIRST annual drop in seven years."
    Reply | Link to Comment
  •  
    Dec 03 09:34 AM
    "Despite 6% drop, Gold outperforms most other assets in first down year since 2000"
    Reply | Link to Comment
  •  
    Dec 03 10:32 AM
    Right on. The only thing holding in my portfolio is gold--and I've made quite decent money on it over a relatively short window of time.
    Reply | Link to Comment
  •  
    Dec 03 12:31 PM
    Hasn't a bird in the hand always been better than two in the bush? No matter what happens to the price of precious metals I want to own something tangible rather than paper anything right now. If nothing else PMs should help me keep up with inflation presuming inflation continues to be the reality it has been throughout my long lifetime.
    Reply | Link to Comment
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