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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.31+0.6%Nov 7 4:00 PM EST
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To: TobagoJack who wrote (29504)2/18/2008 1:03:49 AM
From: Night Trader  Read Replies (1) of 217632
 
As gold is almost never consumed only stored it’s the willingness to keep holding it instead of other financial assets that must be assessed – this is why it’s a currency not a commodity. The driving force of this gold bull has been PE compression just as the previous gold bear was driven by PE expansion.

You often hear that “gold has no yield” which is true on the face of it but it leaves out the fact that part of the yield (most?) of other currencies is to compensate for their inflation rate. Since the total gold supply is added to at a much lower rate it has in effect an implicit yield when compared to a fiat currency. The catch is in a gold bear like 1980-2000 you may have to wait decades to collect it all at once.

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