| One of the criticisms against gold is that it is apparently a cyclical asset. Which asset is not? It is time to see through the current sell-off in gold. Two weeks ago, Bare Talk wrote that investor behaviour is pro-cyclical. It amplifies both booms and busts by buying into rising prices and selling into falling prices. It went without saying that investment recommendations are pro-cyclical too.
Nonetheless, it is good to find vindication before readers forget what they read. The price of gold is down 24% in dollar terms from the peak price of $1,900 per ounce. It is both unsurprising and wrong that epitaphs are being written on gold now...............................................Full Article: Source |