WSJ discovers iTulip argument for buying gold, nine years late

[FRED]

Rethinking Gold: What if It Isn't a Commodity After All?

By JEFF OPDYKE

This won't sit well with some people: Gold isn't a commodity. There. I've said it.

But before you fire off an angry response, hear me out. The facts might change your view of gold's role in a portfolio.

For a long time, we've all heard that gold is a commodity—no different, really, from silver or wheat or pork bellies. Its price ebbs and flows (supposedly) with inflation, which historically drives commodity prices.

Odd, then, that gold's elevated price hasn't fallen in response to tepid U.S. inflation numbers. The Consumer Price Index as of July pegged inflation at just 1.2% for the previous 12 months, not counting seasonal adjustments. Nor has gold reacted to what Mohamed El-Erian, Pimco's chief executive, recently called "the road to deflation" on which he sees the U.S. traveling.

http://sg.finance.yahoo.com/news/Ret...56968.html?x=0

See also:
Catching a gold basher
Lessons of the American Lost Decade

[GRG55]

Re: WSJ discovers iTulip argument for buying gold, nine years late

Rethinking Gold: What if It Isn't a Commodity After All?

By JEFF OPDYKE

This won't sit well with some people: Gold isn't a commodity. There. I've said it.

But before you fire off an angry response, hear me out. The facts might change your view of gold's role in a portfolio.

For a long time, we've all heard that gold is a commodity—no different, really, from silver or wheat or pork bellies. Its price ebbs and flows (supposedly) with inflation, which historically drives commodity prices.

Odd, then, that gold's elevated price hasn't fallen in response to tepid U.S. inflation numbers. The Consumer Price Index as of July pegged inflation at just 1.2% for the previous 12 months, not counting seasonal adjustments. Nor has gold reacted to what Mohamed El-Erian, Pimco's chief executive, recently called "the road to deflation" on which he sees the U.S. traveling.

http://sg.finance.yahoo.com/news/Ret...56968.html?x=0

See also:
Catching a gold basher
Lessons of the American Lost Decade

What? You mean Indian brides don't drive the price of gold? Don't tell the World Gold Council...they'll be so disappointed given all that "research" they've been pumping out for years...

[CanuckinTX]

Re: WSJ discovers iTulip argument for buying gold, nine years late

I love this quote from the article.

"Instead, "gold is a currency" whose daily price is a gauge of the market's concern about the "potential diminishment" of the purchasing power of the dollar and other paper currencies, ...."

That's funny, I wonder who owns this site??

http://fourthcurrency.com/

Amazing how slowly it's happening but lightbulbs are starting to click on.

[Spartacus]

Re: WSJ discovers iTulip argument for buying gold, nine years late

I've learned to keep my advice to myself until it's repeatedly solicited, but I'll break my rule this once:

Fellow Canadians (you know who, hope you're doing well), please don't post this on the Gold Hater's site. The hedgehog that lives in his beard might get mad & attack you. And while I can be a big fan of getting people mad and getting attacked (done it myself in the past), I hate to see wasted effort & frustration.

Yes, there is a specific site I have in mind, but IMHO, anyone who still hates Gold using arguments from 1999 is just NOT going to get it until Gold hits $5k