I'm surprised that this doyen of investors, Mr Klarman, should say that
gold is at an all-time high. It's only at 60% of where it should be in real
terms compared with its present-day value in the early 1980s of $2,000/oz.
That's when Western governments tried to kick gold into the long grass for
ever by selling off massive amounts from their reserves. However, instead
of driving the price down to nothing and leaving the field clear for paper
currencies only -- which they were intending -- gold price stuck hard at
around $400 and then, from 2002/3 started upwards again as increasing
numbers of investors hedged themselves with a bit of safety in a world in
which governments were increasingly unable to look after their own currencies.
Mind you, Mr Kharman is right about the general scene -- but he envisages a
longer time frame (a few years yet) before collapse than I do. I think it
could very well come this autumn unless the EMU pull some rabbit out of the
bag,
Keith
. At 08:33 24/05/2010 -0400, you wrote:
My kind of contrarian...says gov't is preventing bitter medicine,
increasing the chances that this drags on for years.
http://online.wsj.com/article/SB10001424052748704167704575258442772338282.html#printMode
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Keith Hudson, Saltford, England
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