Gold: The Barbarian is Back
Gold: The Barbarian is Back
An article from 2016 remains as relevant as ever today.
In June 2016, gold was at $1,300/ounce (half today’s level) and I published this article at Seeking Alpha. Given the recent surge in gold, I thought this a good time to repost it here. All of the main points are still very relevant. At the time, I drew a correlation between the price of gold and trust in institutions. This correlation still holds today. We are in a time of declining trust because of 1) rising geopolitical tensions, 2) inability to control the southern border, 3) inability to contain the budget deficit, 4) two presidential candidates that we can kindly call ‘suboptimal’, and other items.
I wrote another piece on gold for National Review in August 2020. Read it here: Ron Swanson is Smiling.
The 2016 article starts here: 👇
Gold has risen nearly 20% in six months.
The usual reasons do not explain the recovery.
Trust in institutions may play an important role.
Last fall, around the time we updated our comment on the ratio of gold to the…