A good example of how the information on gold is changing rapidly in the mainstream press was given in CNBC Europe's World Wide Exchange morning edition (i saw it 15 minutes ago). Guest for an hour was Philip Manduca of ECU (!) Asset Management. He has been a guest for at least six years and always has been a contrarian and a gold bull. What was different this time, was that the subject "Gold" got ample time, so Philip was able to give some more insight in the market than usual.
Some of the points he addressed:
- first of all, Gold is a currency
- Gold is a reflation trade
- Gold is a currency debasement trade
- Gold will be $2000 by the end of 2010
- When ETFs or the gold market run into trouble, the rules will be changed
- Therefore, buy physical gold and he showed a 1 Troy ounce gold bar on card, issued by the Birmingham Mint
If Joe Sixpack may not get these messages yet, I think Fund Managers increasingly will. The increase in media attention towards Gold is extremely bullish, not just because it is mentioned more than before, but also because the quality of the discussion about gold is improving rapidly to the kind of analysis shown above.
(i will see if I can find a link to the discussion)
