Quote Of The Day
Is Gold in a bubble? The Economist thinks so. But instructive is something they wrote back in 1980, just before the culmination of the last major gold bubble:
In equity markets, there is much truth to the saying never sell on a strike. In the gold market, which has become in some ways the reverse image of equities, a suitable variant might be never buy on the end of the world. You cannot, after all, take it with you.
A year from now, I’d think that gold will be well under $1,000 per ounce, or as high as north of $5,000 per ounce. That’s not a recommendation to buy gold, however. If it’s north of $5,000 per ounce, that means that things in the United States will have gone so horrendously wrong that owning the gold at that price will be little solace, as you very well may not even want to trade it for dollars.
I learned years ago to never bet against my alma mater, the Purdue Boilermakers. Even if I win my bet, I’m still unhappy with the outcome. It’s much the same with gold. Betting on the end of the world sucks if you’re wrong, but sucks even more if you’re right.