Monday, December 19, 2011

Fortune Investor's Guide 2012 - False Advertising

I'm not a regular buyer of financial/investment magazines, but when I saw Gold coins all over the front cover of the Special Issue 'FORTUNE Investor's Guide 2012' I had to grab a copy to see what they had to say about Gold and it's prospects. Although Gold wasn't specifically named on the front cover I thought there would have to be some coverage...

Front Cover:

The Gold coin theme continued through the magazine with another Gold coin on the contents page and even more again on page 61 which kicked off the 2012 Investors Guide.

Page 61 Title Page:

On the first flick through and skim read of the guide I was unable to see any analysis on the metal that graced their front cover and inside pages, but the second time when reading more carefully I found these two mentions:
"Despite good days here and there, things in the U.S. aren't all that wonderful. At a time when things are so uncertain here, the standard advice is to seek safety, and to protect yourself against inflation and the almost certain future declines of the dollar.
One traditional "safe" investment is bonds, especially Treasury bonds. Another haven in foreign stocks or foreign company mutual funds, and for the more venturesome and sophisticated - foreign currencies. Then there are commodities and "hard assets" such as Gold, Silver, copper, oil and diamonds, that will presumably hold their value if the dollar's decline continues and inflation rises.

None of those options - bonds, foreign stocks and currencies, and commodities - feel even remotely safe these days."
This was later followed by:
"And commodities - well, when you see Gold being marketed everywhere, the game's pretty much over. If you had a time machine and could buy commodities at what they fetched 3 years ago, they'd be a great investment. At today's prices not so much".
So they've decided to lump Gold in the too hard to analyse basket? Are they really going to just lump Gold with commodities and provide no real analysis? Are they really going to line their magazine with pictures of Gold only to dismiss it with a couple of lines? It would appear so.

It was amusing that as I wrote this I spotted Houses and Holes (from Macro Business) had posted another misrepresentation of Gold from AFR: Getting Gold Wrong

While Gold has received an increased profile as mentioned in the Fortune magazine (and as I've covered several times on this blog before), it likely won't be until mainstream press "gets Gold right" and the public is buying that the metal should be put under scrutiny.

Following this false advertising from Fortune magazine all I could do was file it away.

Special filing cabinet:


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  1. if you live in Queensland we have recycle bins for that sort of rubbish. Saves it going to landfill

  2. I guess I should do the right thing and recycle it :)

  3. BB, you could save the cover, frame it and put a text on it....

    "At least the cover was right"

    Greetings from Sweden.

  4. Nice one MrL :D

    Maybe they'll repeat the cover next year, but with some relevant content!