This is serious

The stunning rise of gold over the past 8 years is serious. It is signaling an end to the existing monetary and economic order. Now that might be quite some time away, but it's rise reflects concern over the value of paper currencies.

I have completely missed this run-up. I am a market child of the 90s. By the time I entered the industry, gold had already been falling for 10 years and had another ten years to fall. My first boss was a persecuted goldbug from Switzerland. He had sailed to New Zealand on a yacht and decided to stay and play in the newly deregulated financial markets (nothing like cowboy markets to attract punters). I took a look at gold at the time and dismissed it for the same reason Warren Buffett dismisses it (as a quaint historical artifact with limited intrinsic, and economic value). To add insult to injury, the case for gold was often being touted by "the end is nigh" folks on the fringe. Their arguments were reasonable, but in order for their predictions to come to pass, massive social and economic upheaval must occur. A collapse of the fiat monetary system couldn't happen! Could it? The longer gold underperformed, the further it fell from favor. Alas, if only I had listened to those prophets from the wilderness (aka the Austrians) and taken a little gold on board (just for insurance sake).

But, as with most things in the markets. There is nothing new under the sun. What comes around, goes around, and it is presently the time for gold to shine.

Hopefully I've learned a lesson here. But I wouldn 't count on it (can you say hard headed). I still don't buy the economic argument for gold, and don't see why gold, as compared to many other goods, is "the chosen" store of value. But what I think doesn't matter. It is what the market thinks, that matters. And gold is definitely the asset du jour.