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I've seen no substantive follow up on this subject, Dr. Hudson's observation.
Those of you invested in precious metals - does this scare you or warm the cockles of your heart?
Reiterating what was said (though Dr. Hudson did not go into detail what is or is not included in the numerator and denominator) Just so I understand, if you count up all the money in
insurance
mortgages
bonds (does Hudson include corporate debt?)
forex
derivatives (does Hudson include derivatives? If not, the "much less than 1% looks even worse)
this amount of money absolutely overwhelms all commodity transactions.
It's not a brand new point (it was, I think, one reason Warburton recommended
"avoid commodities with a futures market",
and is the reason that Newmont's CEO says
"if a small fraction of Microsoft's capitalization came into Gold, it would be like pushing Niagara Falls through a garden hose[*]") but Hudson's stance puts the point in a different light than I've been looking at it.
[*] one reason I'm skeptical of Gold is the use of some really vapid stuff like this - lots of stock pump and dumpers use the same argument, tarnishing it
Those of you invested in precious metals - does this scare you or warm the cockles of your heart?
Reiterating what was said (though Dr. Hudson did not go into detail what is or is not included in the numerator and denominator) Just so I understand, if you count up all the money in
insurance
mortgages
bonds (does Hudson include corporate debt?)
forex
derivatives (does Hudson include derivatives? If not, the "much less than 1% looks even worse)
this amount of money absolutely overwhelms all commodity transactions.
It's not a brand new point (it was, I think, one reason Warburton recommended
"avoid commodities with a futures market",
and is the reason that Newmont's CEO says
"if a small fraction of Microsoft's capitalization came into Gold, it would be like pushing Niagara Falls through a garden hose[*]") but Hudson's stance puts the point in a different light than I've been looking at it.
[*] one reason I'm skeptical of Gold is the use of some really vapid stuff like this - lots of stock pump and dumpers use the same argument, tarnishing it