Every week a prominent money manger waxes poetic
about gold and last week was no exception as Paul Tudor Jones sounds like a
converted gold bug in his monthly letter to clients as recounted in this story at Bloomberg.
The time to hold gold is now as faster inflation and
increased purchases through exchange-traded funds and by central banks boost
demand amid stagnant mine output, Paul Tudor Jones’s Tudor Investment
“I have never been a gold bug,” Jones, whose company manages
about $11.6 billion out of Greenwich, Connecticut, told investors in an Oct.
15 letter, a copy of which was obtained by Bloomberg News. “It is just an asset that,
like everything else in life, has its time and place. And now is that
“As one would expect, rising inflation suggests higher gold prices,
especially when the Fed is perceived to be behind the curve,” according
to the letter. “Gold appears to be cheap. In our view, gold’s
value should increase as its scarcity relative to printed currencies
Interestingly, as stocks were getting shellacked on
Friday and the dollar was surging, the gold price ended the day about where
it began - less than two percent down from its all-time nominal high of a
couple weeks ago.
This begs the question of whether we'll ever see a three digit price for the
yellow metal again.
all the other articles written by Tim Iacono
Tim Iacono is the
founder of Iacono Research which provides market commentary and investment
advisory services specializing in macroeconomic analysis and commodity based
investing. He also writes the popular blog The Mess That Greenspan Made.