The yellow metal, writes Jack Hough for Smart Money, “absent neurotic fear, is a lousy investment.” Hough makes no mention that central banks are creating lots of paper (or digital) money and so holding what Murray Rothbard called “the people’s money” might be a good idea.
“Now anyone scared by a chalkboard diagram of a conspiracy among Soros, Obama and Marx (Karl, not Groucho) can simply call their broker,” writes Hough. But of course a GLD certificate may not get a person out of a jam like an actual Krugerrand might. But writing something like that puts me in Hough’s “tinfoil underpants crowd” for sure.
Gold just doesn’t have any practical use, like say oil, writes Hough. The black stuff is useful for sure, but tough to carry. It might be marketable, recognizable, and divisible, but not portable, stable in value, or durable. Hough says America isn’t going bust and Obama, “might turn out to be a decent man rather than a saboteur and Tea Party tantrums might win serious spending cuts.”
Gold generates no cash flow, Hough writes. It does nothing but shine. However, he thinks Tea Party/tinfoil types might run the price of gold to $2,400 an oz. before the market falls apart.
Meanwhile Terry Coxon mentioned in his column for The Casey Report, that the money supply has been increased 40% since the financial meltdown in 2007.
My tinfoil feels just fine.