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Your Dental Hygienist Could Be Driving Gold’s ‘Parabolic’ Rally
Late last week, I not-so-gently suggested that gold was in "mania mode". That wasn't an attempt to traffic in hyperbole. It was more a statement of fact, to the extent one can objectively determine a threshold for "mania", something the Fed insists is only possible in hindsight.
I quoted Bloomberg’s Eddie van der Walt, who noted that the incessant media coverage of gold's ascent had succeeded in "drumming up excitement around a mania-prone Veblen good".
Some readers appeared to take umbrage.
Time to ask aging family members who have had gold and silver in their safe deposit boxes for decades if they want to sell. They probably do not even realize gold is near $2k/ounce.
First, however, they will probably need help remembering where they hid their safe deposit key.
For the last month I have been investing in gold ETF’s …… treating gold just like any short term momentum trade. Doesn’t seem like there is much downside risk and the exit point should be an easy decision.
Buy gold, please:)
My dentist was eyeing my gold crown last week. Glad I was not sedated…
I tried to insert a crown joke, but I couldn’t make it work
So, despite this great rush of historic, massive, outsized, phenomenal, mind blowing, move in gold, it is still just 0.4% of AUM. Up a hugely from 0.3%. Wow. I’m surprised such a tiny asset gets any coverage at all in a world of $300T in paper assets.
“The implication is that retail investors are now overweight gold.” They are? How many of the retail investors in the OECD actually own a share in a gold ETF much less anything physical besides the crown?
Would be interesting to see percent of Vanguard and Fidelity retail who have a gold ETF. And, to see the median and mean percentage of portfolios allocated to any gold. If the mean allocation to gold is 0.4%, the median is probably tiny. Wild guess of median asset allocation for retail investors is 0.01% to 0.1%. I’d guess it’s much like when Bill Gates walks into a bar and the average net worth of the patrons instantly becomes millions. I’d hardly count this as overweight.