GOLD MANIA

I promised to write about Gold and just have not had the time. I have a great deal to say but not a lot of time today so I just want to put down they key points and then add the meat later.

Why?

1. Gold production is declining.
2. Forget inflation or deflation, the key is the fiat money system is bust.
3. Central banks no longer selling because of fear of counterparty risk in financial markets.
4. Relative to global wealth, albeit much reduced, it is massively under-owned in portfolios, so excessive bullish sentiment, which is present for sure, is not a significant issue.
5. This one I really like. For the first time in my career I believe (and have heard) that central bankers want a higher gold price because they are terrified of deflation and want to curb deflationary expectations.
6. Lets face it, we need another bubble don't we?

Stay tuned.