Goldbugs v FT

For years the FT has portrayed investing in gold as akin to flat-earthism, Alan Beattie at the FT is perhaps the most prominent, if not sole, media supporter of Gordon Brown’s sell-off of gold a decade ago. Guido has long lamented the FT’s tendency to follow the latest intellectual fashions and it is no surprise the FT approved of the Balls/Brown sell-off of gold reserves. It was the newspaper that was the biggest cheerleader for the euro and all things EU, of which it is less effusive about nowadays. The FT’s comment pages are full of wishy-washy, centrist, establishment, hand-wringing of the limousine liberal kind – no surprise given they are overseen by a former editor of Prospect, the monthly journal of wishy-washy limousine liberals. FT readers from the City who don’t simmer with self-loathing know it is best to skip the comment pages and read the market reports and the surprisingly good arts pages.

So how would you have done if you had invested in the stock market instead of gold? Take a look at the charts below, gold out performed the stock market by 17% last month, that is not relative out performance, that is gold was up 12% and the stock market was down 5%. Over the year gold is up some 40%, over 5 years and 10 years gold is more than 100% ahead of stocks.

Stocks of course pay dividends but likewise gold can be leased out to short sellers for an income. Alan Beattie insists gold is speculative, Guido would say, on the contrary, it is an insurance against a collapse of paper assets. So far Guido has been right for a decade and Beattie has been wrong. He now reckons the gold bubble is really about to pop this time. Guido reckons the West’s government debt crisis is about to take off big time and would rather own hard assets like gold and farmland than paper assets. You pays your money and you takes your choice.

UPDATE: Alan Beattie tweets to complain that he never recommended stocks as an alternative to gold, above amended accordingly. Nevertheless gold is up nearly 600% since the Balls/Brown sell-off, which he supported. Beattie is emphasising that his injunctions against gold purchases applied to central banks not investors. But not the central banks of India and China apparently…



Tip offs: 0709 284 0531
team@Order-order.com

GuidoFawkes Quote of the Day

David Cameron tells MPs after voting:

“Wouldn’t miss this for the world. Secret ballots very important. Remember the Chartists.”

Top Posts This Week

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

Downing Street Fighting Like Cats and Dogs Downing Street Fighting Like Cats and Dogs
Lucy Powell Falls Apart Under Questioning Lucy Powell Falls Apart Under Questioning
Feminist Jazz Hands Explained Feminist Jazz Hands Explained
WALTER MITTY CV OF ANTI-FRACKING CANDIDATE WALTER MITTY CV OF ANTI-FRACKING CANDIDATE
Cassetteboy v Cameron and Farage Cassetteboy v Cameron and Farage
MICROSOFT SHAKES DOWN PUBLIC SECTOR FOR DOSH MICROSOFT SHAKES DOWN PUBLIC SECTOR FOR DOSH

WATCH: Toby Young Skewers Labour Zero Hours Contract Attack Line WATCH: Toby Young Skewers Labour Zero Hours Contract Attack Line
MAIL TRICKED INTO QUOTING BATMAN FILM IN PLANE CRASH COVERAGE MAIL TRICKED INTO QUOTING BATMAN FILM IN PLANE CRASH COVERAGE
ANTI-FRACKING PARLIAMENTARY CANDIDATE WANTED TO WORK FOR FRACKERS ANTI-FRACKING PARLIAMENTARY CANDIDATE WANTED TO WORK FOR FRACKERS
Crick Gets Paxo’d Crick Gets Paxo’d
Cameron’s Secret A-List Cameron’s Secret A-List
Corrections and Clarifications: Brooks Newmark Corrections and Clarifications: Brooks Newmark
What is Wrong With the Lobby? What is Wrong With the Lobby?
Arrogant Bercow: “I’m Not Going Anywhere” Arrogant Bercow: “I’m Not Going Anywhere”
GOVERNMENT SHELLS OUT FOR PHOTO OF DEAD ZEBRA GOVERNMENT SHELLS OUT FOR PHOTO OF DEAD ZEBRA
DWP Press Office Wins the Internet DWP Press Office Wins the Internet
Two-Faced Chuka Ruins Labour Attack Ad Two-Faced Chuka Ruins Labour Attack Ad
Cameron Mauls Miliband at PMQs Cameron Mauls Miliband at PMQs
Actual Pub Landlord Likes Farage Actual Pub Landlord Likes Farage
Dave’s SNP Poodle Zinger Dave’s SNP Poodle Zinger
GREEDY SOLAR INDUSTRY WANTS MORE PUBLIC CASH GREEDY SOLAR INDUSTRY WANTS MORE PUBLIC CASH
This is the worst thing the LibDems  have ever done This is the worst thing the LibDems have ever done
CLIMATE CHANGE FUELLED MOSQUITOES ARE NOT COMING TO GET YOU CLIMATE CHANGE FUELLED MOSQUITOES ARE NOT COMING TO GET YOU
ORDNANCE SURVEY OPENS UP DATA MAPPING TREASURE CHEST ORDNANCE SURVEY OPENS UP DATA MAPPING TREASURE CHEST
“I’d S**k Off David Cameron” “I’d S**k Off David Cameron”
WATCH: Cameron Heckled By Pensioners WATCH: Cameron Heckled By Pensioners
WATCH: Gove v Campbell WATCH: Gove v Campbell
Politician dumps his wife over sexy selfies Politician dumps his wife over sexy selfies
UKIP PROTESTERS ORGANISED BY GREEN LOBBYIST UKIP PROTESTERS ORGANISED BY GREEN LOBBYIST
You’ve Been Cricked! You’ve Been Cricked!