Have you seen what the gold price is doing? It's tanking almost as dramatically as the green energy investments, that's what. Though, of course, for rather different reasons.
The latest downward move has been prompted, at least in part, by Cyprus selling off its gold to meet its debt obligations. And also, perhaps, by Goldman Sachs revising downwards its estimate of where the gold price is going to be at the end of the year.
As a goldbug, obviously this troubles me. But not a lot. Like many true believers of the Austrian school (Margaret Thatcher was one of us, I suspect), I see this more than anything as a tremendous buying opportunity. I'm thinking this especially having read the
fascinating new report from The Real Asset Company, which argues gold could go at least as high as $6,000. (Over four times its current price)
You'll say: "Well obviously they've got an interest in talking up the gold price." But they don't actually. On the occasions I've rung to ask them about where they think gold's going, they say: "We haven't a clue." As far as their business model is concerned it doesn't matter which way gold goes, because their money is made on a percentage of each trade, rather than the gold price itself.
So why, if they have no view on gold, are they yet hinting at this dramatic rise? Because, they argue, both history and market fundamentals show that it cannot be otherwise.
Comment: No this is not satire, but yes the War on Terror is a sick joke. AP found the letters in Mali?
About that siege of the BP gas plant in Algeria in January:
Blonde haired, blue-eyed American and Canadian 'terrorists' led international 'al Qaeda' brigade in siege on BP gas plant in Algeria, while 'English-speaking Islamic militants of European appearance' roam Mali