For nearly three years, The Slog has been saying the tracker v physical precious metals price misfit is ridiculous. Now it is insane…and offering solid reasons why last week’s gold collapse was no collapse at all.
I spend a fair amount of time reading about gold, and even more thinking about it. That’s because, despite all the palpitating craziness of last week, my common sense (and nous about anthropology) keeps repeating over and over that precious metals are like properties: they are ultimately worth what real people will pay – not what some mendacious arse with an agenda says they’re worth. Even if everyone from estate agents to Fed Reserve goons via landlords and Chancellors say “It’s worth this”, ignore them and ask the market. This is the acid test that usually roots out the liars from the information providers. Continue reading