teraflop

Going for Gold? It's Overrated

I cringe thinking of my current gold position with its negative yield. However, I picked it up last year in anticipation of what we have sitting on our plate: (finally) realized/acknowledged inflation expectations along with structural weaknesses that people only can see when it comes to USD FX changes and housing.

My view on inflation back then was: oil is up, real estate was up, gold was already up, commodities were up - why is there "no inflation?" *There* was your inflation. And as in any under-priced/suppresse... process, when it comes to pass, there will be a hockey-stick like move upward. My decision was contrarian, as I am not a Gold Bug (Gold is just one of several assets I have) and only a few economists that I know of were complaining about the traditional measures of inflation.

Looking forward, I agree with you, many expect >$1000 prices which is an indicator in and of itself. As for where we'll go, I would even ask the question, what did Gold do during the Great Depression?