Contrarian thinking is easy, but successful contrarian investing is difficult. Most amateur contrarians neglect that the crowd is right most of the time. It’s only at market turning points where the crowd is wrong and contrarians are right.
The only thing that’s free right now is the air that we breathe. Other than that it costs to manufacture every object and commodity in the world. There is also a certain cost to producing an ounce of gold. It doesn’t grow on trees.
Chinese housewives or “aunties” have purchased 300 tons of the yellow metal in the past three weeks amounting in nearly $16 billion. The impact of the run on physical gold in China may have a significant effect on import statistics.
The dollar gold price drifted back below $1,650 an ounce Wednesday morning, 1.1% down on the week so far, although it jumped higher in Sterling following after a Bank of England report said policymakers are prepared to "look through" persistently high U.K. inflation.