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Gold Posts Biggest One-Day Loss Since 2008

You can almost predict the oft-repeated explanations the pundits offer up every time the precious metals behave irresponsibly.

  • The trouble with being a contrarian is that you can never be quite contrarian enough. We began having doubts about the ‘feds inflate…gold soars’ hypothesis last year. It was too easy…too obvious. And if it were that easy to inflate a nation’s currency, how come the Japanese couldn’t get the hang of it in the ’90s?
  • Inflation, yes…but not for a while. And gold? Well, we are in it for the long run. In the short run, anything could happen.
  • To clarify our view on gold, The Daily Reckoning is not bearish on the metal. It is not bullish on the metal either. It is buggish. We are gold bugs. In the long run, gold will retain its value. Since that’s all we ask of it, we are always satisfied. Even if it is down in the short run – and it went through an 18-year down cycle from 1980 to 1998 – it will come back in the long run.
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