I am at the CFA Conference in beautiful Edinburg, Scotland. A survey of the large body (1200 delegates from all over the world) asking what is your biggest worry – got “inflation” as the overwhelming response. I consider (based on a wealth of experience) this proof that inflation is not a real concern. I did my own survey at a Kelowna B.C. CFA forecast dinner, as a guest speaker, several years ago. After a couple of years of crappy markets, I asked for a show of hands – my question was: “Who is bullish?” There were two hands up in the crowd, and one of them was mine. The stock market had a banner year subsequently. Even really smart people get trapped into consensus thinking.
On gold. I listened to a fellow show the same charts and make the same arguments I outlined in my previous book,Resources Rock, SEVEN long years ago in support of a higher gold price. Stuff like ‘new China demand, lack of new big gold discoveries, limited supply blah blah blah. Of course, when I made those arguments and predicted rising gold prices, gold was less than $500 per ounce. Central banks (idiots) had been sellers of gold then (sell low) and over the past two years they’ve been (buy high) buyers. See a pattern? If you do then lookout!
Now it’s time to sip a fine (Glengoyne) scotch whiskey and then retire for today. Cheers!