Inflation, Gold & Scotland

Edinburgh Castle

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!


About Mal Spooner

Malvin Spooner is a veteran money manager, former CEO of award-winning investment fund management boutique he founded. He authored A Maverick Investor's Guidebook which blends his experience touring across the heartland in the United States with valuable investing tips and stories. He has been quoted and published for many years in business journals, newspapers and has been featured on many television programs over his career. An avid motorcycle enthusiast, and known across Canada as a part-time musician performing rock ‘n’ roll for charity, Mal is known for his candour and non-traditional (‘maverick’) thinking when discussing financial markets. His previous book published by Insomniac Press — Resources Rock: How to Invest in the Next Global Boom in Natural Resources which he authored with Pamela Clark — predicted the resources boom back in early 2004.
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