Talking about the Benefits of Gold – Is the Mainstream Invading My Turf?

Talking about the Benefits of Gold – Is the Mainstream Invading My Turf?

There’s something happening in the mainstream…

…something I didn’t expect to see for a few more years yet.

In the last couple of months, there’s been a couple of articles talking about the benefits of gold.

That’s right. The dusty old relic is starting to get some attention from the very people that normally talk it down.

Just three weeks ago, The Australian wrote how gold used to have a prominent role in the financial system, and that perhaps central bank policies will lead people back to gold. Writing:

Gold lost its formal role as the anchor of the global financial system in 1971. It’s no longer money but instead a speculative metal whose price tracks sentiment about the outlook for economic growth — and confidence in our money system.

Nevertheless, its rise in price should give central banks cause for thought. It’s naive to think the relentless march of so-called unconventional monetary policy isn’t eroding public confidence in the financial system. Central bankers have been fretting about the prospect of deflation, but might the gold price spike suggest the opposite?1

Then two weeks ago, even the Australian Financial Review weighed in, with a columnist saying:

Gold bugs have always struck me as paranoid. You have to really believe the sky is falling in order to hoard physical bars in a digital age. So, it’s rather worrying that some investors and central bankers are talking up gold.2

That’s two articles in as many weeks from the mainstream focusing on gold. Something we haven’t seen since the yellow metal was bubbling along in 2011.

But should we worry, like the writer for the AFR suggests?

Not at all.

Let me show you why…

Treating gold bullion like cash

Rather than worry, people should see this as an awakening.

The more people that understand gold, the closer they move to long-term wealth protection.

So the mainstream changing their tune on gold means that more of us will learn about the role gold plays.

Don’t believe me? Have a look at this…

Over the weekend I opened a copy of a magazine from The Australian, and saw this:

Is that bullion resting on cash?

Source: Ag Journal; The Australian

Can you see that?

The stock image that Ag Journal has used has bullion bars sitting on top of cash

To boot, the article that image relates to, talks about how Australia’s farmers need to raise billions of dollars by 2030.

In other words, the picture implies that gold is money.

Ya don’t say!

Obviously that’s not an admission either the mainstream or our government is about to make.

Nonetheless, the past three weeks of attention wouldn’t have happened a year ago.

Yet two articles and a well-placed stock image inside three weeks goes to show that sentiment for the yellow metal is shifting.

Bullion dealers couldn’t buy this sort of publicity in years gone by.

However, that doesn’t mean my work is done.

Far from it.

In fact, I’m just getting started.

See, last week my latest project launched. That means after 12 months of late nights, early mornings, and replacing meals with coffee, you finally get to see what I’ve been up to.

This service has taken me around the world, seeking out the world’s experts on the yellow metal. And getting their take on gold, and why people all over the world should be paying attention to it.

Believe it or not, the mainstream writing the odd article about the role of gold is just the beginning.

Now it’s over to Jim. One of my most trusted authorities on gold. Aussie media may just be noticing the yellow metal, but as Jim tells it, central banks are buying it again.

Until next time,

Shae Russell Signature

Shae Russell,
Editor, The Daily Reckoning Australia

1 ‘https://www.theaustralian.com.au/business/economics/house-prices-up-but-were-as-good-as-gold/news-story/6daa27649f66e890bf435ed5b9422b71’
2 ‘https://www.afr.com/markets/commodities/gold-is-looking-more-and-more-attractive-20191125-p53dq6’