Everybody’s Picking On Poor Gold, Now


The Wall Street Journal reported that money managers are widely shorting gold, at a time when there seems little risk of inflation, which of course is the friend of gold prices.

Gold, despite inflation remaining very tame, has smoked competing investments over the past decade, even gold-lampooner Warren Buffett’s company, Berkshire Hathaway. But, as Buffett has written, the thing most propelling gold has been gold bugs’ belief that it would go up, rather than any intrinsic value.

Gold mining stocks – Barrick Gold (ABX), Newmont Mining (NEM), GoldCorp (GG), Kinross Gold (KGC), Gold Fields (GFI) and Novagold (NG) – have fallen harder than gold itself in recent months.

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Gold Price in US Dollars Chart

From the editors of YCharts. We can be reached at editor@ycharts.com.

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