Gold's Fear Trade Finished: Really?

Wednesday, 8/21/2013 

The GOLD PRICE destruction culminating in late June brought out the usual suspects to school us ever since about why gold is all done as a worthy investment in an era of economic revival, writes Gary Tanashian in his Notes from the Rabbit Hole.

 

That comes compliments of heroic policy making by Ben Bernanke and Associates. Perceptions are now fully cemented toward policy maker control and a new global growth cycle.

 

These gold-negative voices included a pair of academics, the widely followed media star Nouriel Roubini and a lesser known writer named Robert Wagner, who has been riding the gold bear wave with a series of articles at SeekingAlpha, talking about how the main pillar supporting gold – the fear trade – is dead.

 

So we have a perma-bear and new-era bull coming at the barbarous, non-dividend paying relic from both sides. Excellent! Just as a tidal wave of knee jerking financial refugees piled into the 'fear' trade – as Wagner calls it – in 2011, the tide has spent two years slowly going out. But now the tide is starting coming in again on gold even as happy stock market and economic perceptions are being cemented; just as gold is doing this...