I found it amusing that Mohamed El-Erian wrote an opinion piece for Bloomberg which asserted that gold is not much of a ‘safe haven these days.’ His thesis was entirely devoid of material facts. His underlying rationale was that safe haven capital was flowing into cryptocurrencies rather than gold. I guess if one has a western-centric view of the markets, that argument is a modicum of validity. However the scope of the analysis omits that fact that the entire eastern hemisphere is converting fiat currency at a record pace into physical gold that requires bona fide delivery outside of western custodial roach motels.
This post was published at Investment Research Dynamics on September 1, 2017.