Loading ...Ben Hunt from 2013 …. How Gold Lost Its Luster
the always excellent Ben Hunt …. for the literary types … no charts here
“To market participants in 2013 gold means lack of confidence in money, and their behavior in buying and selling gold similarly reflects this meaning. Buying gold today is a statement that you believe that global economic events may spiral out of the control of Central Bankers. It is insurance against some sort of massive monetary policy mistake that cannot be fixed without re-conceptualizing the global economic regime – hyperinflation in a developed nation, the collapse of the Euro, something like that – not an expression of a commonly shared belief in some inherent value of gold.
The source of gold’s meaning, whether you are a market participant in 1895 or 2013, comes from the Common Knowledge regarding gold. J.P. Morgan said that gold is money, and he was right, but only because at the time he said it everyone believed that everyone believed that gold is money. Today that same statement is wrong, but only because no one believes that everyone believes that gold is money.”
“…no one believes that everyone believes that gold is money.
I think he nailed it.
Thumbs up to that pedro
That’s why the complex is undervalued, because the western population doesn’t appreciate not understand how or why gold is money. Also, these comments only really apply to the west, rather than the asian continent or the middle East. When the west gets its collective head around this concept, it will be time to sell.
*nor
I agree. For thousands of years China. India and Middle East have been buying gold. People from those locations have more gold than all G7 nations CB combine.
Indian citizen alone have 24000 ton.
Gold is money. USD is currency. There is difference between currency and money.