In a recent commentary I suggested that you "read all the balanced articles you can on gold, don't listen to the touts". The article featured in this commentary is one such article.
The August 18, 2011 article titled "To the Newly Minted Gold Bugs" makes a balanced case that physical gold is not about 'price', but rather that it has always been, and continues to be, about 'value'.
Some of the author's notable comments:
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'markets, whether physical gold or other markets, always correct at some point';
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under the stewardship of Alan Greenspan "the idea of productive growth was abandoned (in America) in favor of inflationary growth";
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"a bull market in gold is really a bear market in paper (currency)";
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when thinking about physical gold "it is helpful to understand concepts like 'value' and 'insurance' as opposed to 'price' and 'money making plays'";
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gold "is acting as if its money; the only money capable of retaining value in current (mid-August, 2011) conditions";
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"gold is not about price ... gold is about value";
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"be measured, be balanced and don't make more of it than it is"; and,
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"gold is just a tool, an anchor to sound money; to value".
For anyone who owns physical gold - directly or indirectly - or is contemplating owning physical gold, I suggest this article by Gary Tanashian (of the Notes From The Rabbit Hole Blog) is a must read. I say that in circumstances where if you regularly read my commentaries you will see that Tanashian's views and mine largely coincide. That said, I don't apologize for recommending the article. I also think what Tanashian said last August is as cogent and relevant today as it was then.
If this article is representative of Tanashian's thought process, balanced approach to his subject matter, and objective thinking, his is a Blog well worth your consideration.
