Marcel Duchamp’s urinal? Yawn! Let’s face it: It’s Russia where all the action is!
Lenin was a genius. Well, a genius on gold, anyway. He despised it and thought it should be used to build public lavatories. Warren Buffet famous quote is no less contemptuous: “Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
The fact is, of course, gold has never defaulted and remains the ultimate hedge. However, gold, like any other commodity is not immune to the fundamental economic law of supply and demand. Neither is it immune to natural cycles and, indeed, chartism. Certainly gold has been a very erratic store of value in recent years, especially in the new age of Exchange Traded Funds which are fuelling the speculative element.
For now, the decade long bull-run has come to a stuttering halt. Bullion started the year at $1,183 a troy ounce and went on to reach $1,300 by the middle of January as the European Central Bank prepared to launch QE and the leftwing party Syriza swept to victory in the Greek general election. Since then gold has been in retreat and and it has now surrendered all its 2015 gains. The trend is clear: DOWN. A buy at $800 and Pinkers is confident it will get there… before taking off like a Trident missile! That will be a glorious golden p*** up!