Dallas, Texas (PressExposure) May 17, 2013 -- A recent Reuters article has drawn the ire of a long-standing gold investment web site for its assertion that the gold price's recent slide is a result of investors' confidence in U.S. stock markets as well as their distrust of the gold market. Gold-Investment.info spokesperson Janet Smith believes that the article was intentionally misleading and gave readers the false impression that stocks are now the place to be for investors.
"It doesn't surprise me, really," Smith said. "All of the major news outlets and media conglomerates have a vested interest in the success of stocks so it makes sense that they would try to frame the recent drop in gold prices as a positive sign for stocks. Gold has outperformed most stocks over the last decade, and it has kept a lot of investors safe from inflation and the government's ability to manipulate stocks markets, not to mention the fact that black box trading and something as simple as a hacked Twitter account can, and has, hurt stocks in the past," she added.
In the article, Reuters contributors Jan Harvey and Clara Denina claim that "rallying stocks have hurt bullion's appeal" but Smith says that is not necessarily true. "What our research team has seen over the last few months is that investors are shifting away from bullion, not in favor of stocks, bonds or cash, but in favor of investment-grade rare coins," Smith commented. "The fear of another government-led confiscation of bullion, as well as the historic profitability of relatively common, investment-grade PCGS gold coins, has led many of our investors to liquidate bullion positions and shift those funds into the semi-numismatic market," she added.
As of 5pm EST the gold bullion spot price was down $5.80, or 0.4 percent, to $1387.90. Coin prices listed on the PCGS Price Guide were even for the day.