Last weekend, in a segment titled Gold Obsession & Ephemeral States of Mind NFTRH 330 talked about a growing presence that seems to follow Martin Armstrong’s anti ‘gold promoters’ theme. This theme seems to be – coming as it does in a gold bear market – something of a promotion itself; just as the over-the-top inflationist gold bug stuff was during the bull market.
Please understand, dear followers of Marty, I am not at all calling him a promoter. He is the originator of ideas, thoughts and analysis that while not all my cup of tea, is interesting enough that it is linked at NFTRH.com and Biiwii.com. But behind this mindset that is solidifying in the public consciousness, is a growing cadre of gold bugs – some of whom benefited from the notoriety lavished upon them by the likes of Mr. Gold, Jim Sinclair – that seems to be taking things over the top*, as always seems to happen with humans and in markets. Every mental elastic band seems to stretch too far.
In the above noted NFTRH 330 segment an article I wrote in 2007, A Value Proposition, was referenced. In re-reading it for the first time in years I was impressed with how the ‘value’ case for gold has not changed one bit in the last 7+ years. At least in my interpretation of value, which has kept me personally at an even pulse rate during the bear market and given NFTRH subscribers consistent perspective through a difficult, but ultimately necessary and healthy phase for gold. It felt refreshing to re-read it.
So, if the the article benefited me, its author, all these years later, I thought it might be of benefit for other peoples’ perspective as well in this emotional time of gold obsession.
As a final note, I’ll just say that it sure is interesting that today, in a wicked bear market, gold is nearly $500 an ounce higher than it was when the article was written.
* I have done my share of gold bug critiques, complete with the requisite incoming hate mail. But the point is that the new thing going on now was nowhere to be found when it was unpopular to take shots at the gold bug ‘community’. Indeed, with the help of a subscriber who stated ‘enough already, we get it!’ I came to realize that the horse has been dead for a while.
A Value Proposition (November 3, 2007)
As the rot in Wall Street’s dark alleys works its way from the inside out, from the seediest hedge funds’ leveraged ‘investment’ vehicles to Main Street’s financial institutions (pensions, 401K’s, savings, etc.) gold has taken center stage, closing above $800 for the first time in its still young bull market. Fear and anxiety are increasing as the US Dollar falls further below serious long term support and in this environment, gold is an emotional conduit through which growing fears of fiat monetary instability pass. Picture a burning building with a limited number of exits and a large crowd trying to pile through the door. Let’s call it a… oh I don’t know… let’s call it a casino.
