Gold Is the Anti-Bubble and the Big Picture Remains Bullish

investing.com:

Back in August, I wrote an article called Gold: The Anti-Bubble.

The point being that if you want to consider an asset to be sound value in a world of ongoing plays boosted by inflationary policy, speculating upon it – especially at a time when the cyclical risk ‘on’ trades are in upside momentum mode – is illogical.

As are expectations for it to perform up to par with said bubble beneficiaries (as noted previously, I define the bubble as monetary and fiscal policy and the stock market as a direct beneficiary) as long as It’s a Bubble, and It’s Intact.

Today, six months after the ‘Anti-Bubble’ article I present a short excerpt from this week’s edition of Notes From the Rabbit Hole that continues the theme.

It’s been six more months, but an ancient asset of monetary value will move at the same pace as the intact bubble and its performance will generally be inverse to said bubble. When the risk ‘on’ mania blows out, well, you do the math.

Gold will not be ready until it is ready, that goes double for the miners, and no amount of cheerleading, railing against the ‘system’ or dogmatic thinking about gold and inflation will change that.

Gold is the anti-bubble, and speaking personally I find that keeping that in mind helps me to not get it mixed up with the speculative macro. Gold, big picture bullish as it is

Is the ANTI-BUBBLE, after all. When you realize that this metal is not a speculative asset * but is instead, monetary insurance and an anchor in the next financial debt/paper/digital storm, you don’t pressure the ancient hunk of value to be what it is not.

It acts as an inflation protector at times, although it is often a relatively poor one, as evidenced by how well stocks have done in the post-2020 inflation phase