Now that gold has shown a little bit of life along with the various other precious metals my junk mail folder is awash with the requisite number of peanuts trumpeting that gold is the single best investment class in the history of the universe. Which is at complete odds with reality that gold is neither a long term store of value nor a hedge against inflation. It is a pet rock subject to huge highs followed by a ferocious belting. And despite what nutbag survivalists think – you cannot eat the damned stuff.
I wonder why central banks hoard Gold if it isn’t a store of value ?
The holdings in Fort Knox is only worth about $180 billion which in technical terms about two tenths of SFA
barbarous relic