The momentum crowd piled into Japanese and Emerging Market stocks in 2013. The MSM dutifully bashed gold at year end, declaring it dead as an investment after an uninterrupted 12 year bull market, which they missed. After one month, it seems the momentum crowd has a problem and investors in the barbarous relic may not be so stupid after all. You also may be paying more for your ethanol this year, as corn prices are rising. But at least you can eat bread, as wheat prices have plunged.

I wonder if that bloviating fat ass Long Island lawyer, pretending to be a an investing guru, Barry Ritholtz missed the little gold rally? He missed the 1st twelve years of the gold bull market, but spent 2013 doing a victory dance about finally being right. He was probably too busy shilling his latest book, conference, or investment firm to notice the gold rally.


  1. Precious metals, ammo, and farm land (preferably in a stable foreign country) are going to lose the least in the shit storm that’s coming. For those who can’t afford that stuff, buy goods in bulk that will sustain you in a barter economy: cigarettes, alcohol, batteries, toilet paper.


    Folks, that’s how Admin makes his NCAA and Superbowl picks …. finish last, declare victory!

  3. 5000 years ago, in the age of Nebechednezar (it might be some other dead ruler but that’s not really important), an ounce of gold bought around 250 loaves of bread. It now buys around 300. What will a Fed reserve note buy in 5000 years?

    Stupid people always ignore math, history, science & make decisions on emotion. In investing, you gotta be like Mr. Spock as much as possible, like Warren Buffet does.

    Look at how people bash Obomber, defend Bush, when their policies are exactly alike. Or vice versa. It’s based on racism or hatred for a political party, not any rational thought.

    How could anyone think Mittens Romney was a choice?

  4. Well, lessee: The Chinese and the Indians are buying gold like crazy, along with many central banks. The Perth Mint has added a shift to try and meet demand.

    Buying gold is stupid? Okay, we’re so smart, riddle me this: The Chinese have over three trillion dollar’s worth of jingle in their jeans, while the US is some seventeen trillion bucks in the red. Who’s smarter?

    JP Morgue and the FRB can manipulate the paper price of gold all they want–until they can’t. JPM is already in trouble if folks increase demands for physical delivery. (Probably why they’ve shifted to going long.)

    Paper money buys less all the time. Gold is at worst right at static, for the moment. I really don’t think that can last.

  5. The Chinese have terrible environmental issues and lots of empty overpriced buildings (” RE assets”). We have terrible debt and probably lots of soon to be empty overpriced buildings (“RE assets”). I say neither of the two is doing great in the smartness department. Both probably doing amazing in the shortsightedness department. A few very rich, many very poor. Anyways, I agree, gold will always have more intrinsic value than paper.


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