Originally posted by AverageJoe
Why do you think I constantly have exposure in the gold sector?
The last thing I want with exposure is confirmation bias. I don't fall in love with any sector.
So tell me what did economic fundamentals tell you at the time of TARP/QE/Twist?
What did economic fundamentals tell you about Feds IR rise programs?
The current US debt has been talked to death by HC goldbugs here and analysed to death by the bond players. Did you know that Russia/China have been reducing their bond holdings in a programmed cycle? Do you see the bond prices collapsing? Someone else is buying and the publish speculations are that US banks/large Super funds were buying them up.
Please don't say manipulation by Feds or PPT because as long as there are buyers absorbing exits and the price do not crash, that is all that matters. We are all managing uncertainties. I hope you don't view Gold as a riskless investment.
Gold is riskless. It may have short term swings, but it's guaranteed to be valuable, forever. Unless we find a concentrated deposit on a comet, and it's viable to mine. And then, all commodities will plummet and it won't really matter. Gold (and all of the heaver elements) are guaranteed to be rare in the universe because they're made in the rarest and most violent events in the universe. So if you're going to bet on something, Gold is as good as you'll get.