I have had a flurry of comments and feedback about a Mr. Nick Guarino, who wrote a report at the beginning of the month titled, ‘Gold is About to Crash!”

…just like oil, real estate and stocks did! It’s the latest bubble. You could DOUBLE your money when gold tanks — with little known investments Wall Street is desperate you don’t find out about.

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Guarino is well known for a number of reasons, including his Wall Street Underground newsletter. He charges a hefty fee of $5,000 per year for that newsletter and once had 5,000 subscribers I am told.

Normally I would let this pass, but there has been enough scuttlebutt and interest to bring it to your attention and to make some comments, none of which are favorable. I have a copy of his 30 page report and it is naïve and childish. He makes points that are flat out wrong. Some examples…

“You may have heard Wall Street’s spin about the Chinese government and gold. It is out and out fraud. Designed to lead the latest crop of gold sheep to slaughter…

“Here’s what Wall Street doesn’t tell you:

“Gold is in vast, and I mean VAST, oversupply. As I’ll show you below, supply for 2009 will be three times greater than FALLING demand! A record surplus of unsold gold! Chinese government demand is a drop in the bucket, compared to the huge stockpiles of gold that are building up around the world.”

That is a flat out fallacy. Lies if you want to call it that. It is so far off the mark, it is embarrassing even to put this stuff in print in this column. As we all know, demand exceeds mine and scrap supply by more than 1,000 tonnes per year and the central banks’ available gold reserves are getting used up to meet that DEFICIT.

Besides that, Guarino presents his case that Wall Street is sucking in gold investors at the top when we know that nothing could be further from the truth. Wall Street wants gold off its radar screen as much as possible.

One more:

“I believe gold will trade around $300 per ounce. Maybe less.”

That would shut down just about every gold mine in the world.

Guarino has much more in his report, but it adds up to garbage, like so much else out there that is written about gold. Put him in the clueless camp and that ought to end any more Guarino discussion. For those who want to know more about NG (whose report emanates from Laval, Quebec)…

Tuesday, August 12,2003

Nick Guarino: AM DJ, Outlaw, Bear

www.nypress.com/article-7967-nick-gu...

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