Gold Bulls Sedated by Vaccine?
Posted November 10, 2020
Now that a promising vaccine is coming down the pike, (some) gold pundits ask, does this spell doom for the gold bull market?
For those who mistake the hood for the engine, perhaps this makes sense.
When Pfizer revealed its vaccine proved 90% effective, after all, the gold market flinched.
Indeed, right before our eyes…
Gold sold off faster than a “Black Friday” Tickle Me Elmo with a Furby attached to its forehead.
(Gold dropped around 4.3%, while silver lost 5.3%.)
But, we wonder, does this spell doom for the gold bulls?
While we stifle a laugh, let us also confess:
We have no crystal ball. We know nothing about our moon sign or when Pluto is in conjunction with Saturn. We tried numerology once years back but it ended in a gambling addiction, a black eye, and an overdraft notice from the bank.
In short, these days, we accept our limitations. We can’t predict the future.
So we here at LFT do the next best thing. We subscribe to specific principles, axioms, laws and precepts which get us through the days, weeks, months, decades, and 2020s.
Here are nine we’ve scrawled in our journal for this week.
1. Algren's Precepts: Never eat at a place called Mom's. Never play cards with a man named Doc. (And don’t learn this one the hard way.)
2. Allen's Law of Civilization: It is better for civilization to be going down the drain than to be coming up it.
3. Agnes Allen's Law: Almost anything is easier to get into than out of.
4. Allen's Axiom: When all else fails, follow instructions.
5. Baer's Quartet: What's good politics is bad economics; what's bad politics is good economics; what's good economics is bad politics; what's bad economics is good politics.
6. Baker's Law: Misery no longer loves company. Nowadays it insists on it.
7. Baldy's Law: Some of it plus the rest of it is all of it.
8. Alan's Law of Research: The theory is supported as long as the funds are.
9. Baxter's Second Law: The adoption of fractional gold reserves in a currency system always leads to depreciation, devaluation, demonetization and, ultimately, to complete destruction of that currency.
Back to gold…
To undisciplined gold investors, less fear of COVID-19 apparently means a lower gold price… and that it’s high time to lighten the load. Because of Baxter’s Second Law, of course, we know better.
An effective vaccine might be good for soothing the fear of a rise in “confirmed cases”…
But let’s see what happens when you try to stick a needle in the GBOAT, or the “Greatest Bubble Of All Time.” (H/t to Charles Hugh Smith and OfTwoMinds.)
Ignore the market noise. Stick to the tried and true.
And, if you’re feeling froggy, as the day-trading frenzyists say…
We’ve talked at length about our friends at Hard Asset Alliance in the past.
And today is as good as any to bring them back up.
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Managing editor, Laissez Faire Today