One of the measures by which risk is under-priced is gold. We don’t know what unknown will reach out of nowhere and grab us by the collar. But we hope to have at least a Krugerrand or two in our pocket when it does.
Yesterday, the price of gold shot up more than 18 dollars. What reality did the gold market see? Fanatics in Iran… Democrats in Washington… a lame duck in the White House…? We don’t know.