Some time ago, Mark Twain opined that a Gold Miner was a “liar standing next to a hole in the ground!” Keynes described gold as a “barbarous relic”.
More recently, Jim Rogers wrote that “Investors ignore supply and demand at their peril. And nowhere else do emotions and other psychological factors get more in the way of seeing those fundamental forces clearly than on the subject of gold.”
Yet, the price seems to be heading in one direction only – upwards!
If you fear this is another asset bubble in the making, you have an ally in the UK’s Investors Chronicle where Daniel O’Sullivan compares the current gold frenzy with the oil price spike last year, and finds many similarities.
- Ian Cooke