The "Fear" trade
The dollars falling!
I mean "you wrote it in your book" about the collapse of the dollar the end of the world ,-video Armageddon right there on the Internet I mean shouldn't it couldn't it ! The day after the dollar crashes was a wonderful book I'm happy it's a bestseller but from an investment standpoint we can't bet the collapse of the dollar if the trend isn't in place. For three years now the dollars moved sideways. So a lot of investors have invested in gold no doubt the asset is in a nice uptrend and many investors believe that gold must surely be a hedge against the declining dollar and yet gold is going up some 70% over the last year and half two years and the dollar hasn't gone down 70% in fact the dollar has risen over the last two years! hasn't declined at all! So the question remains what really is the true value of gold well the value of gold is the same value as the value of IBM, Lululemon, or Lead ! Gold is an investable asset that's in an uptrend and has for the last several years risen gold has had little to do with the collapse of the dollar and more to do with the fact that gold is simply rising and if gold is rising... I want to own it , I OWN GOLD BECAUSE ITS GOING UP - as for the story…. I know it, I wrote a book about it, but thats not why I own it. When it stops being in an uptrend… I won't want to own it.
disclosure (we own LULU, and Gold)