It’s been a week since Gold fell 13% over two days, and we’ve uncovered a few nuggets talking about it since then:
- You shouldn’t listen to us on Gold. We were saying Gold looked toppy back at $400.
- Gold is not a US savings bond or money market replacement. Gold is a commodity, with all of the commodity volatility the disclaimers warn you about. A 13% drop in 2 days isn’t exactly the kind of safe, smooth return many selling you Gold would have you believe, and in fact Gold’s kurtosis reading is about 4 times that of a normally distributed curve (meaning these 1 in 100 year storms will be much more frequent)
- It doesn’t matter if Gold is going up, or down – Gold coins still suck
- If you think Gold is a buy here – it is possible to have your futures account held in Gold:
- About $1.1 Trillion in wealth was lost last week in Gold, using this prediction on the total value of the world’s Gold.
- Gold is currently in a Drawdown of -25% (1900 down to 1425)
- See Ritholtz on 12 misguided beliefs held by Gold Bugs (i.e. those who think it is going to $3,000+)
- Gold’s all time high in 2012 inflation adjusted dollars was $2,508 (about 75% higher than we stand today).