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Wall Street Journal Boosts Gold FOMO

Wall Street Journal Boosts Gold FOMO

They hate that everyone suddenly wants physical metal

The Wall Street Journal just published a long article (reposted via MSN) lamenting the fact that everyone suddenly wants gold. So thanks, WSJ, for the FOMO boost:

Inside the 21st Century Gold Rush

(MSN) – Eric Vazquez, a lineman for a power company in southwest Florida, says he’s holding a lot more gold than most financial advisers would recommend. Not just in his portfolio, but also in bars and coins spread between several secret locations.

It is a strategy for a world that he worries is growing more chaotic. The government keeps spending beyond its means. Stock prices can crash from a tweet. Ensuring his wife and children go to bed at night in peace, Vazquez said, requires owning tangible assets, not just a claim on them through some exchange-traded fund.

“At least in my adult life, nothing’s gotten better,” said Vazquez, who is 33. “And I just feel like I want to take as much of my own livelihood, my own safety, my own family’s safety, into my own hands.”

Worries about war, discord and mounting government debt have fueled a worldwide rush by individuals and institutions into what Wall Street calls “physical gold”— bars, coins, jewelry and nuggets. Widespread stockpiling has helped lift prices more than 40% since October 2022, to $2,367 a troy ounce.

The climb has at times perplexed analysts, because it didn’t coincide with a typical feature of prior rallies: mounting bullish bets in futures, options and ETF markets. Also, gold pays no income, and generally becomes less attractive to investors when rising interest rates drive up the payouts from other relatively safe assets, like bonds. Yet the metal’s sharpest ascent occurred between this past February and April, just when the Fed started signaling that rates might stay higher for longer then Wall Street expected.

…click on the above link to read the rest of the article…


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