Gold Narrative Has Just Not Worked

March 16, 2015 2:00pm by

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  1. NoKidding commented on Mar 16

    Went looking for your 2013/2014 post anticipating gold under 1000, and in the process found the dozens of posts in which you merely wrote or quoted pieces saying only that stocks would outperform.

    Okay, you’ve been right for a few years, maybe since 2011.

    • VennData commented on Mar 17

      Hmmm, if you read this blog, maybe since about 2009, about mid March I think. BR’s stock call has pounded gold from that time.

      Of course that may not include your capital losses on gold sales since peak NoK. Nice to have all those realized losses. NoKidding. What are you going to do with them?

  2. btowers commented on Mar 16

    I’ve actually been impressed with how it’s held up in the face of the strengthening dollar. And it did very well in 2014, actually, just not in USD.

  3. rd commented on Mar 16

    It all depends on your perspective. Everybody thought the gold bugs were talking about the US. What they were really talking about was gold being the savior in Russia, Europe, Canada, and Australia where gold has actually done fairly well over the past couple of years. But there is always next year for the US!

  4. Thalamus commented on Mar 16

    Remember, the narrative isn’t that gold will go to $5,000 and beyond within the current system, but that fiat currency always fails, therefore it’s a 100% sure bet that gold and silver will outperform at some point in the near future. Why hold your wealth in a currency backed by debt that’s going hockey stick exponential? Only common sense is behind keeping some of your assets in precious metals to transfer your wealth to the next currency/monetary system.

  5. Ponchovilla commented on Mar 16

    The FEDs War on the price of Gold
    Proof Of The Fed’s Blatant War On Gold
    http://investmentresearchdynamics.com/proof-of-the-feds-war-on-gold/
    “As everyone knows, the Fed is highly motivated to keep a lid on the price of gold and silver, as they represent real money in relation to the fraudulent, Ponzi scheme unbacked paper fiat dollars printed by the Fed. Every dollar the price of gold rises invalidates the credibility of the dollar by a dollar.”
    For those who romance about the roaring 1913’s and how much the Fed has done to destroy our currency
    Then And Now: What 100 Years Of Change Looks Like, In One Infographic

    http://www.zerohedge.com/news/2013-06-15/then-and-now-what-100-years-change-looks-one-infographic

    “The all purpose zipper was patented.”

    Maybe it’s time to use it to zip up the why I hate the FED gibberish after the 100 year hate campaign.

    • VennData commented on Mar 17

      “Everybody knows” is a great argument.

      Since “Everybody knows” no need to even mention it. Of course if you take it out, your link there is left with nothing. About what your typical gold but has made buying in since the 18-1900 days.

      ROFL. Gold bugs. ROFL right at you.

  7. spooz commented on Mar 17

    Not everybody has faith that the central banks can hold the whole crumbling mess together forever, and gold is a bit of an insurance policy for that.

  8. ottnott commented on Mar 17

    Time to direct people back to The 12 Rules of Goldbuggery: http://ritholtz.com/2013/04/the-10-rules-of-goldbuggery

    Yeah, the 10-rules URL. BR must be a fan of the Monty Python “Spanish Inquisition” sketch.

    And, in a timely reaction to the piece, 22 months after the initial publication, we have a gold semi-bug, Mark O’Byrne providing a “correction” that displays or acknowledges belief in nearly all 12 rules:
    http://www.goldcore.com/us/gold-blog/12-reasons-ritholtz-many-experts-mistaken-gold/

    He closes with a direct offer to you, BR:
    “As a frequent contributor to Bloomberg, I would welcome the opportunity to debate this with Barry.
    What say you @ritholtz ? : )”

  9. intlacct commented on Mar 17

    From ‘A Dozen Things I learned from Morgan Housel’: “Anyone who believes in the Mr. Market metaphor understands that volatility is both inevitable and the source of an opportunity for a rational investor. ”

    Yet another reason to include a small allocation to gold (and commodities) in a portfolio and to eschew the false dichotomy of the ‘Gold Narrative Has Just Not Worked’.

    Biloselhi

    • VennData commented on Mar 17

      There is ZERO reason to own ANY gold as an investment. ZERO.

  10. Moss commented on Mar 17

    Gold is a hedge nothing more as far as investing goes. Like insurance you hope you don’t need it but you pay the premium.

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