2 more gold advocates rebut Nouriel Roubini's bearish bullion forecast - Wealth Management

New York University professor and financial-media darling Nouriel Roubini recently issued a bearish call on gold, predicting it would fall to $1,000 by 2015. We've already presented the rebuttal of contrarian economist Marc Faber, who said: "I wouldn't use him now for giving me advice for when to buy and when to sell shares, nor when to buy gold nor when to sell gold." New critics of Roubini's forecast have been coming out of the woodwork, and two of the latest areJ.S. Kim of SmartKnowledgeU and Michael "Mish" Shedlock.

From J.S. Kim: On December 15, 2009, when gold was trading at $1122 per troy ounce, Nouriel Roubini stated, "Since gold has no intrinsic value ... there are significant risks of a downward correction rather than a rapid rise towards $2,000, as today's gold bugs claim" and gold "looks suspiciously like a bubble." A 35% drop after a bubble bursting is a reasonable fall for "bubble" talk, which would have sent gold into the low $700s per ounce. A month earlier, Roubini had declared, "gold at $1,500 is utter nonsense." So how did gold perform after Roubini hawked his "gold is a bubble" message all over the news? Not only did it never retreat back to $700 after Roubini ranted against gold, but it never retreated back to $800 or even $900, and in fact it soared to above $1,900 an ounce less than two years higher, a 69% surge higher that not only crushed Roubini's "gold at $1,500 is utter nonsense" declaration, but made Roubini's prediction of gold's future price behavior utterly wrong by more than 100%.

After Roubini was so ridiculously wrong and seasoned gold advocates were right back then, one would think Roubini would think twice about opening his mouth again when making predictions about gold. But nope. He's back at it again, as his only purpose in the media and in the institutional educational system seems to be to serve as a shill for the banking elite. This week Roubini claimed that gold would retreat back below $1,000 once again, just as he did four years ago and the reasons he provides are as illogical now as they were back then, including sophomoric ad hominem attacks against gold bugs that lack any factual support whatsoever. One would think that if the media were to grant someone that made such a horrendously wrong prediction about gold just a few years ago the spotlight again, that they would discuss his past erroneous predictions to provide some context to his present predictions.
And Mish Shedlock noted: I just finished reading Nouriel Roubini's seven point analysis on the Bursting of the Gold Bubble in which Roubini's asks and answer the question "Gold skyrocketed to over $1,900 per ounce in the fall of 2011 from $800 in early 2009, but has since collapsed by around 27%. Why?"

I offer a point-by-point rebuttal. ...

Things Roubini is Wrong About
*    Gold
*    Tail Risk
*    Benefits of monetary printing
*    Benefits of fiscal stimulus
*    On what causes economic growth
*    Inflation
*    Stock market risk

More information can be found online at http://www.goldbullionadvisors.com