After a back injury forced him to re-evaluate his Olympic dreams, Ben Davies found a new thrill in the competition of trading. Now managing a long-only gold fund, he strives to protect investors’ wealth while advocating for free market reforms around the globe.
After gold lost $84 an ounce last Friday, we can conclude the beneficiaries were not gold investors who panicked and sold, but rather those who are fighting to preserve the reputation of the U.S. dollar and the fiat currency model that underpins the global economy.
In the investing world, you can take a three-month view, a three-year view or a 30-year view. One person looking at one asset class might have a different forecast depending on the time horizon he is considering. In this article, I will look at gold through a 30-year lens.
Call it wishful thinking, but a small part of me thinks that the real reason why German officials are starting to ask tough questions about their gold reserves is because they are losing confidence in our monetary system.
What is worrying about this kite-flying exercise is that the IMF lends it credence. We should be doubly worried if the IMF is using it as a means to gauge reactions before imposing the ideas contained therein on an unfortunate client state. Worried, but perhaps not overly surprised.
The claim that the gold standard exaggerates economic fluctuations is based on an incorrect understanding of the business cycle and especially, since it is most often cited, the 1920s post-First World War gold exchange standard.
Doubling down on QE3, the Federal Reserve (Fed) Chairman Bernanke tells China and Brazil: allow your currencies to appreciate. One does not need to be a rocket scientist to conclude that Bernanke wants the US dollar to fall.