Many goldbugs like gold as a hedge against Federal Reserve policies and high inflation. The president of Cranberry Capital is a different kind of goldbug and explains how his proprietary monetary measure, "The Actual Money Supply," is the reason why.
The reality for gold bulls may fall short of their expectations of ever-increasing prices that run ahead of gold supplies, says a self-described gold bug who forecast the initial run-up of gold at the turn of the millennium but who now finds himself in the bear camp for bullion.
The performance of junior resource stocks since 2008 is closely correlated to that of aluminum, lead and zinc. That makes sense, because base metals are sensitive to existing economic conditions and to the market's expectation of future economic growth.
The Cranberry Capital Inc. president Paul still favors the natural resources sector above all others because they are "absolutely central to our standard of living, our quality of life and the technological progress we've made."