It’s been over a year since I last wrote a post here.
It’s not that I’m no longer interested in gold and gold bullion. Far from it.
Nor is it that I’ve stopped buying gold for myself. I haven’t. It still holds an important place in my portfolio.
It’s just that nothing has been happening.
Over the last 12 months the stock market has surged, and now seems to be doing an excellent imitation of a slow-motion train wreck.
As for bitcoin, which I’ve written about before… well, that’s been a train wreck of a whole different order.
Meanwhile, gold has done pretty much nothing. The price today is very, very close to what it was a year ago.
And truth be told, that’s a good thing.
That’s one of the things I love about gold. While all around, everything else is in a state of turmoil, gold has remained steady.
However, for me, there’s been very little to write about over the last year.
And what I never want to become is one of those financial writers who talks for nothing. Endless blah blah, signifying nothing at all.
I actually sympathize with people who make their principal living by maintaining a running commentary on the price of gold. For months, there’s been almost nothing to say.
And yet, there is ONE thing worth mentioning.
And that’s why I’m writing this post today.
With multiple train wrecks crashing all around us, why hasn’t the price of gold gone through the roof? To the moon even?
Is there not enough uncertainty out there?
The narrative for gold has always been that it’s an asset of last resort. When the world catches fire, the price of gold will rise.
And yet here we are, during one of the most turbulent political times for decades, at home and abroad… but the price of gold isn’t rising.
Over the last year, the value of one bitcoin as jumped to over $19,000 and fallen to about $3,500.
Not to mention stock markets that are stumbling badly.
But gold stays the same.
How come? Why isn’t gold moving up in price at a healthy pace?
I imagine there are plenty of “technical” answers experts can throw at that question.
But my sense is that gold has simply lost its narrative.
Investors no longer know what place it holds in their portfolios.
Nobody knows what to do with it, or what story to tell about it.
And in a very real sense, story lies at the heart of most investments. It’s the stories people tell and share about gold that buoys up its value… or not.
I find this fascinating, and plan to think more deeply about it. Which means I’ll be writing my next post sooner rather than later.
In the meantime, I’m thankful the price of gold hasn’t jumped to the moon just yet. Because I can still afford to add a little more to my safety stash.
And I hope you can too.
Until next time.
Further reading:
6 Good reasons to own gold coins or gold bars.
Storing gold – at home, in a safety deposit box, or with your dealer.
The post Why I’ve been silent about gold during a year of political and financial chaos… appeared first on Owning Gold.
