Ever been to Japan? A very hard working race, one that I admire, it crashed years ago and has never really recovered, it was the result of a mania, a bubble. Did you read the last few paras of Roubini's article?
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A currency serves three functions, providing a means of payment, a unit of account, and a store of value. Gold may be a store of value for wealth, but it is not a means of payment; you cannot pay for your groceries with it. Nor is it a unit of account; prices of goods and services, and of financial assets, are not denominated in gold terms.
So gold remains John Maynard Keynes’ “barbarous relic,” with no intrinsic value and used mainly as a hedge against mostly irrational fear and panic. Yes, all investors should have a very modest share of gold in their portfolios as a hedge against extreme tail risks. But other real assets can provide a similar hedge, and those tail risks—while not eliminated—are certainly lower today than at the peak of the global financial crisis.
While gold prices may temporarily move higher in the next few years, they will be very volatile and will trend lower over time as the global economy mends itself. The gold rush is over.
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Notice the part that says "gold prices may temporarily move higher in the next few years....."
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