JasonC

Is Gold As a Safe Haven Just a Myth?

Gold is in an inflationary brainstorm bubble exactly the same in every respect as the bubble in oil, in housing, in potash, in every category of real asset bid up to stratospheric levels in the course of the present decade. All of them fueled by low rates in the first half of it, and all of them carried to ridiculous excess on speculative fuel, momentum, and ideological nonsense. And every one of them is going to go splat, completely, utterly, totally, with losses of 50-75%.

Gold stocks are just discounting this already, while gold bugs cling to their magical talismans and recite their conspiracy theory nonsense.

No, your bubble isn't different, any more than oil's bubble was different, or the housing bubble was different, or the internet bubble was different, or the Japan bubble was different, or the Hunt's silver corner was different, or the second oil shock was different...

It's a bubble. Therefore, it will go splat. Law of nature.