Yesterday the price of gold reached new historical highs.
Contrary to the recommendations of the majority of analysts, I hold no gold in my portfolio. To be perfectly honest, I divested some months ago.
I'll tell you why. I agree that a significant percentage of the current price represents the devaluation of the paper currency, but the problem is that an undetermined percentage represents the fear that reigns in the markets. Until such time as I am able to determine what the latter percentage is, I am certainly not a buyer of gold. Why should I take over somebody else's fear?
I'll go further. I'm neither a buyer of exuberance nor of fear. If you are, I feel sorry for you. Unfortunately, in the financial world, if you follow the general paranoia, you do not end up in the madhouse, but you will certainly receive a warm welcome in the poorhouse.
