As we enter a week in which the expectations are high for yet another large expansion of central bank balance sheets, and ever more extreme monetary policy (thanks to the LTRO 2), we thought it appropos to listen to Grant Williams, of the famous "Things That Make You Go Hhhhm" newsletter, explain in its simplest terms, why it is still a good time to own gold. In two excellent and succinct presentations, Williams discusses the 'simplicity' of investing through the last four decades but ends by focusing specifically on the rotation to Gold at the start of the last decade (2000) and why the reason for rotating out of the precious metal has not occurred yet. Seeing the world of Gold as a battle between Too Much and Not Enough (and drawing on global supply, demand, and holdings flow) Williams lays out the reasons for owning gold, and how to know when to cover - as he narrows the five reasons to reconsider Buffett-and-Roubini's Barbarous Relic down to one simple rule - Central Bank Monetary Policy Changes.
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Simplicity 1 - An introduction to investing by Simplicitly over the past forty years and making one big decision through each decade - ending with a focus on the current position in Gold and Central bank largesse writ large...
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Simplicity 2 - Williams expands specifically on Gold - with key insights on owndership, supply, demand shifts, demographics, and central bank behavior with a succinct summation of reasons to own and reasons to exit that should help many deal with the ebbs and flows.