Malkiel

The Future of Gold, Silver and Commodities in the Coming Recession

This recent market downturn laid bare an unexpected fact about gold, which is that it's price today is apparently the result of widespread networks of leverage--when a crisis comes, instead of being the object of a flight to value, it is the first object of value to be sold off at a discount by those desperate to meet their margin calls. The people of China and everywhere else are clever enough to see what happened here, and I would suppose they'll draw the reasonable conclusion that gold may have lost its magic. If the world is paying attention then gold's moment of revival may have passed...