Fleckenstein Wonders Why Gold Gets No Respect

Bill Fleckenstein is nobody's fool.  His Contrarian Chronicles are often an interesting read.  At the least, you can expect to see an original thought from time to time, and that's quite rare in my opinion.

Naturally I appreciated the following from Mr. Fleckenstein.

As an asset, gold has helped protect and deliver gains versus paper money for 10 years running, yet the popular media heap nothing but scorn on it.

So obvious, but also so vitally important and largely unmentioned by the hacks in the mainstream.  As if that weren't enough, he goes on to include this priceless gem.

I keep waiting for the day when folks realize that if you invest in the shares of a gold-mining company, you basically own a piece of the money-creation machine. It's sort of like owning a piece of a central bank that isn't staffed by losers.

This single article was worth the price of my subscription!


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Gold is real wealth - Bill Bonner

One common complaint of those who don't like gold is that it offers no return.  Fair enough--but what kind of return has the S&P 500 offered over the last 10 years?  Worse yet, what kind of inflation adjusted return has the S&P 500 offered?  Maybe gold has some value after all.  Just ask Bill Bonner.

Gold is real money. At least, it’s as real as money ever gets. Gold represents wealth. It can be exchanged for wealth. And since the above-ground supply of gold grows about as fast as the economy itself, gold tends to hold its value over centuries. Today, gold is worth about the same as it was worth 2000 years ago.

FYI, Bonner is no Johnny-come-lately to the gold trade.  He touted the idea of "buying gold on dips" as half of his trade of the decade for, well, the last decade.



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