Have gold and silver bottomed?
The controversy in investment circles is about escalating portfolio risk and how to hedge it.
Let’s make something clear before addressing this question: regulators train and legislate investment managers into believing that gold is not the way to hedge investment risk. Gold is not a regulated investment and therefore not an investment at all. An investment manager can hold a small amount of unregulated investments if his compliance officer signs it off. But the compliance officer is there to discourage or prevent an investment manager from even considering investing in unregulated investments.
Consequently, investment managers see the risk-free position to be cash in their accounting currency, even to the extent of not buying physical gold or silver ETFs. It amounts to a cop-out. This meddling with markets by the authorities is at the root of the current period of confusion in western capital markets over how to respond to black swan events such as the war against Iran.
