Philip Coggan of FT informs us this week that: Gold is shining again.
Alas, he must have wrote thos words before the recent unpleasantness on Friday.
Coggan notes that Gold Bugs rightly say that all paper money is eventually inflated;
And that commodities and other assets are good "inflation protection."
Coggan also notes that ALL ASSETS are subject to speculative manias.
ALAS, EVEN GOLD!
Indeed, Gold has yet to reach it's old 1980's high of $800.
EVEN WHILE STOCKS BONDS AND REAL ESTATE HAVE SOARED OUTRAGEOUSLY RECENTLY!
IT IS PROBABLY WORTHWHILE TO NOTE THAT ALL ASSETS CAN BE UNREASONABLY PRICED;
AND INDEED, DURING PERIODS OF "UNHEALTHY" MONETARY POLICY ONE OR ANOTHER ASSET GROUP WILL PROBABLY BE SUBJECT TO A MANIA!
In the 70's and 80's it was GOLD!
TODAY, ITS REAL ESTATE AND STOCKS!
Coggan and others note that INDUSTRIAL METALS like copper and lead are now at highs unseen in years.
So, whether or not the central banks are "conspiring" against Gold and Gold bugs might not matter!
BAD MONETARY POLICY WILL OUT IN THE ASSET MARKETS ONE WAY OR ANOTHER! SOONER OR LATER.
So, if you don't like the action in GOLD?
BUY COPPER! BUY NICKLE! BUY NATURAL GAS! BUY OIL!
THE CENTRAL BANKERS CAN RUN;
BUT THEY CAN NOT HIDE FROM THEIR MISTAKES FOREVER!
MAYBE EVEN, BUY LEAD?
Ya think?
