Stanley Druckenmiller said: “I sold all my gold (sic) on the night of the election” because he sees inflation spiking and that will force money(sic) out of gold…hmmm….sell gold because you see inflation coming? That has to be the most idiotic investment rationale I’ve ever come across. Even “buy stocks because they keep going higher” is less dumb than that.
You’ll note the “sic” I added after Drunkenmiller’s comment about “gold.” “Sic” is used after a quoted word (from someone else) that seems odd or out of place. I inserted “sic” after Drunkenmiller’s use of “gold” because he never owned gold. He bought GLD, which is a paper derivative of gold. The only way you own gold is if you buy physical gold and keep it outside the system. GLD is a fraud, just like every other fiat paper “asset.”
I also inserted “sic” after his use of the word “money” with respect to “money flowing out of gold” (because he thinks inflation will spike up). Gold is money. It’s the second oldest form of transaction currency – silver being the oldest.
Finally, the idea that gold should be sold ahead of an expectation of a spike in inflation is…well, for lack of a better term, retarded (apologies to safe-space and socially correct people). Gold is the ultimate inflation hedge.
I sincerely do not know what would motivate Druckenmiller to make those remarks about gold – maybe he was patronizing what remains of CNBC’s imbecilic audience. I don’t feel any need to directly address each component Drunkenmiller’s assertions about gold – and about his expectations about feeling good about the prospects for the economy. The audiences of blogs like this one get it.
The current trading action in gold is being fueled by the paper market manipulation. If you review overnight charts for the last 3 months, you’ll see that on average and in general gold moves higher during the eastern hemisphere physical gold trading hours and gets bombed once the London and NY paper gold markets open after the Asian markets close.
It’s as simple as that. The paper gold market, like Drunkenmiller’s comments and investment rationale, are emblematic of the fraudulent, debt-riddled Ponzi nature of the U.S. and western hemisphere economies.
While the mantle of “power” in the U.S. was handed from Uncle Tom to Andrew Dice Clay, the real financial, economic and political power is being shifted from the western hemisphere to the eastern hemisphere. The massive flow of physical gold from west to east is the root of this tectonic geopolitical and economic movement.