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September 01, 2005

Gold Investing Blog - Genuinely Objective Advice, From a Gold Dealer???

The latest addition to The Stock Market Blog Resource Page neatly illustrates the risks of the blogosphere and why readers need to understand the sources of their investment advice:

Gold Investing Blog is written by Jordan Peters, who started a 23 year career in gold investing from the time he became general manager of "a leading $23 million gold and silver investment firm", and says that he has also been a full time writer for the past 15 years. He describes the blog as covering "all issues gold and gold investing", and says he reacts to current gold news without assuming a whole lot of prior knowledge from his readers. But here's the problem. The blog is "brought to you" by Buy Gold at Cost, an online gold coin dealer, and the exact financial relationship between Mr Peters and Buy Gold at Cost is not disclosed. (Is  Buy Gold at Cost the "leading $23 million gold and silver investment firm" that he is/was general manager of?) Whatever the relationship, it's likely that Mr Peters is strongly conflicted. Sure enough, the blog is relentlessly bullish on gold, and includes a post titled "Gold Coins, A Primer". Importantly, it fails to mention that the gold exchange-traded funds (GLD and IAU) are a significantly cheaper and easier way for most investors to buy gold than purchasing physical gold coins, despite the fact that at least one other gold industry expert has confirmed that. Still, if you want the bull case on gold, you'll find it here. Launched in April 2005, with roughly one post per day.

Posted by dymaxion at September 1, 2005 10:33 PM


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