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TODAY, I Turned Bullish On Gold & Some Other Thoughts! :-)


Ok. Gold futures are $1286. I intend to buy gold stocks, which I have not yet identified, or the ETF, GDX. Haven't done it yet, though plan to begin to leg in, even as I expect a final drop a bit lower.

Why? Because it feels like it is, after so long, the time to begin treating Gold as the world currency which it is.

Any analogy with BItcoin is sure to produce skeptics, but part of the appeal of the cryptocurrency is that the supply of Bitcoin is capped at 21 million, PERIOD. But it is totally true that there is potentially unlimited supply of other cryptocurrencies, which to some extent, converts the Bitcoin argument from one of limited supply to rather, a marketing issue. An important question becomes, which cryptocurrency has broadest brand recognition and distribution, (although many of the cryptos do have different characteristics and uses which are in fact very relevant)?

Gold? Well, there is just GOLD. As I discuss in my eBook, annual production is 118 million ounces, and including recycling, total annual supply is 158.387 million ounces. And yes, from the beginning of time, apparently 7 billion ounces of Gold have been mined, and much of that remains on the surface with huge amounts held in central bank and investor vaults. And, there is Gold in the ground. But in the context of world total monetary/currency supply, Gold is relatively limited. The price is going higher, and not as a function of inflation or crisis.

Now of course, my case for Platinum to me, is more certain and more powerful. Indeed relative to Gold, Platinum has an exponent attached to it, above the "M". Is it Platinum, squared? Platinum cubed? I dont mean that literally, but you get my point. I am heavily invested in Platinum, but around the edges, intend to add some Gold. 

By the way, read a nice analysis today by the excellent Seeking Alpha commentator Andrew Hecht, who I have mentioned before, on his case for Gold. As I have once noted, I have never spoken with Andrew, but have informally read his work for years.

I also read today a well thought out argument for Platinum, written by Dominic Frisby of moneyweek.com. I don't know Dominic or Moneyweek, but found the analysis well done.

 

 


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