If you call gold a “weird asset class”, as I did, you’re bound to receive a ton of angry emails and comments. Gold is kind of like a religion, you either believe in it or you don’t. Nonbelievers are calm and rational for the most part. The believers are “a bit nutty”, as James Montier put it. They all recite identical arguments, using the same choice of words, in the similar order as they were scripted. In fact their arguments do sound very much like gold commercials that run all day long on CNBC and radio. Vitaliy Katsenelson

It must be admitted that Vitaliy's bearish argument, one which has been made on this site repeatedly since 2001, will eventually prevail. In the meantime measure it against the performance of any other asset class in that same time frame and you'll find the results are, indeed, a "bit nutty." For everything there is a season.





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