Reading four-year-old investment analyses attacking gold bugs:
Gold flunked. Gold failed. Gold fizzled Wednesday. It closed at $680.30 an ounce, down on the day and now, for the first time since 2001 if my records are correct, it is down for the year.
On May 9, 2006, gold closed at $699.40. That means gold is down $19.10 on the year, or 2.7 percent. A deposit at the bank beat gold. The stock market beat gold. A little old lady on roller skates beat gold.
All I hear is silence. Is the gold bug community so self-assured that they can ignore this, or does silence mean a turn is coming in the trend? I have read that financial investors are so complacent that they are not taking sufficient account of the risks they are taking. Is this now true of gold investors also?
Today, of course, gold is above $1400 an ounce.
Don't get me wrong; I think it's a terrible idea to buy gold expecting to make money on it. But then, that's what conventional investment analysts have been saying since 2001, when an ounce of gold was around $250.