Rich Man's Gold

Charlie Croker: You've got no imagination. You couldn't even decide what to do with all that money, so you had to buy what everyone else wanted.
Steve: Try this on your imagination, okay. That gold is already gone.
--The Italian Job

The UK Telegraph reports that while the price of paper gold has been marking multi-year lows, demand among the rich for larger gold bars has been robust. This, of course, is what ECON 101 would suggest. As prices fall, demand rises.

Of course, demand for financial assets often works in reverse. The lower prices go, the less people want to buy. It is only when prices head higher that people jump on the bandwagon.

The rich buying physical gold in size right here suggests that many well-off people do not feel altogether right about the world right here. They feel the need to roll paper currencies into hard assets. To diversify.

Gold is essentially a hedge against disorder. It is a means of preserving wealth. Governments know it. The rich know it.

position in gold