Tuesday, October 14, 2014

The Tuesday news

Here's some reading for you:

Bespoke - sector trading range charts. Don't bother: it's simple. Everything's 3 standard deviations down. Because, as usual, reasons.

Gavyn Davies - it's the new mediocre, not a global recession. With a lot of charts with squiggly lines, but also the important reminder that collapsing oil prices are good for oil importers. Hey, Japan and Europe import oil, don't they?

Mineweb - 1000-year-old Viking treasure found in Scotland. Hey Warren! These Vikings seem to have had no trouble with burying their gold in the ground. Should they have instead invested in the government bonds of, say, the Holy Roman Empire? Or would you have preferred diversification, to include exposure to bonds from the Fatimid Caliphate and the Kievan Rus?

Or hey, maybe they should have bought farmland with their money. Because farmland produces wealth, unlike gold. And god knows that farmland retains its value through the centuries, especially in Scotland in the Middle Ages!

Ask yourself why we care about a 1000-year-old Viking gold & silver treasure, and why it's worth $1 million today.

Mineweb - gold ETFs in India suffer 13th straight month of outflows. Quote:
Between June 2013 to August 2014, consolidated outflows were $521 million (Rs 31.94 billion), which is over 40% of the category's current assets under management.
Um... I did the math. That's around 18 tons at today's price. India consumes more gold than that in a year. In other words, I don't care about Indian ETF flows.


  1. Don't forget, the Vikings bought all that nice farmland in Greenland.

    1. They bought farmland everywhere, didn't mean they got to keep it.

      You can't bury farmland.