Takedown Of Hulbert’s 5 Reasons Not To Own Gold

Mark Hulbert’s recent Barrons piece on 5 Reasons Not to Own Gold was interesting considering the recent raids on the metals markets. As this Seeking Alpha rebuttal details, Hulbert’s poor attempt at metals bashing was also apparently cherry-picking data to make his case. Author Dave Kranzler also point out that Hulbert overlooks the most important data set of all…

“Now, onto the primary reason to buy gold: it’s a time-tested hedge against rampant Government-motivated fiat currency devaluation. Let’s use the U.S. dollar since we live in this country and buy goods denominated in dollars. The U.S. dollar index hit 121 in mid-2001. Currently, it’s hovering around the 80 level. That’s a 33.8% decline in the value of the U.S. dollar relative to currencies that make up the index. At the same time, the price of gold in mid-2001 was $270 per ounce. It’s currently $1650 per ounce. That’s a 611% appreciation in price vs. the U.S. dollar. In other words, the U.S. dollar has lost 83% of its purchasing power relative to gold. That’s a remarkable fact and one that gets no mention anywhere in the mainstream media.”

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aaronlaymanTakedown Of Hulbert’s 5 Reasons Not To Own Gold

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