Things That Make You Go Hmmm … Like A ‘Run’ On The Gold ‘Bank’


Things That Make You Go Hmmm: Signing Off (Mauldin Economics, Dec 20, 2014):

Say what you want about the gold price languishing below $1200 (or not, as the case may be, after this week), and say what you want about the technical picture or the “6,000-year bubble,” as Citi’s Willem Buiter recently termed it; but know this: gold is an insurance policy — not a trading vehicle — and the time to assess gold is when people have a sudden need for insurance. When that day comes – and believe me, it’s coming – the price will be the very last thing that matters. It will be purely and simply a matter of securing possession – bubble or not – and at any price. That price will NOT be $1200. A “run” on the gold “bank”  would undoubtedly lead to one of those Warren Buffett moments when a bunch of people are left standing naked on the shore. It is also a phenomenon which will begin quietly before suddenly exploding into life. If you listen very carefully, you can hear something happening…


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