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Jonathan Hoenig - Gold Bugs May Get Squashed



April 09, 2012 – Comments (5)

[I don't necessarily agree with the article, but with so many gold bugs here I thought they'd find it as interesting as I did, plus I do like the author.

It's hard to imagine the public's view on precious metals back in the early 2000s, back when companies like Sun Microsystems, and InfoSpace still dominated investor attention, oil traded at $30 a barrel and gold wasn't only unfollowed by most, but unknown altogether.

Over the course of the following decade, the entire asset class transformed. Gold (and gold stocks) soared, turning a onetime investment backwater into the market's most sought after asset. Gold has now been up for 11 years in a row.

Full article 

5 Comments – Post Your Own

#1) On April 10, 2012 at 9:15 AM, XMFSinchiruna (26.57) wrote:

I found nothing of interest there. I'm not familiar with the author, but the analysis is simplistic, and the conclusions 100% wrong-minded.

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#2) On April 10, 2012 at 11:43 PM, FleaBagger (27.54) wrote:

He (perhaps unwittingly) presents a pretty good case for buying gold mining stocks. They're down where they were when gold was <$1300/oz. Gold is ~$1650/oz.

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#3) On April 11, 2012 at 1:48 PM, rfaramir (28.67) wrote:

Looks like he was paid to scare people from an investment the payers wanted to get into. "All signs suggest investors should end their love affair with the yellow metal."

Can't get much more blatant than that. "Run away!" he says, when on other similar subjects (e.g., bonds), he speaks clearly. "Hoenig: When governments manipulate interest rates, it becomes harder to measure the economic reality." How can this apply to bonds and not to gold as well?

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#4) On April 11, 2012 at 4:20 PM, kdakota630 (28.77) wrote:


Two good points rolled into one.

Like I said, I didn't necessarily agree with him on this, but typically I think he's spot on, otherwise I wouldn't have bothered to post it.

That said, it still doesn't sway me from precious metals. 

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#5) On May 20, 2012 at 4:13 PM, cmbbroker (< 20) wrote:

I was a little disappointed in this column. Wondering if he will retract it when he is proven wrong by the markets.  

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