Gold bugs have always struck me as paranoid. You have to really believe the sky is falling in order to horde physical bars in a digital age. So, it’s rather worrying that some investors and central bankers are talking up gold.
The Dutch Central Bank recently argued in an article that if there were to be a major monetary reset, “gold stock can serve as a basis” to rebuild the global monetary system. “Gold bolsters confidence in the stability of the central bank’s balance sheet and creates a sense of security.”
Talk of gold, however, does not. Investor Ray Dalio recently spooked attendees at the Institute for International Finance conference when he mentioned the possibility of a flight to gold because of his concerns about America’s fiscal position.