By Ian Mathias
Nov 5th, 2009 (ContrarianProfits) — Gold gained yet another powerful ally yesterday — hedge fund icon Paul Tudor Jones. The man who famously called Black Monday in 1987 and the Nikkei crash a few years later now thinks “gold appears to be cheap.”

In a note to his investors, Tudor said, “I have never been a gold bug. It is just an asset that, like everything else in life, has its time and place. And now is that time… gold’s value should increase as its scarcity relative to printed currencies increases.”

[However...] “So many hedge fund managers and pundits are singing the same tune: long gold and short U.S. Treasuries,” our friend Dan Denning wrote in today’s Daily Reckoning. “The bond bubble could go on much longer than anyone expects. And when so many people agree on something, none of them are usually right. As a contrarian, you’d be worried about becoming a victim right about now.”

[source]

RS View: A couple of points…

Just like the assets (and everything else in life) that Paul Tudor Jones described, contrarianism, too, has its time and place. And so in regard to Dan Denning’s contrarian comments, now is NOT one of those times…

Look, certain things in life simply do not fall under the contrarian credo that says, “When so many people agree on something, none of them are usually right.” Think, for example, of the wide and prevailing agreement on the basic building blocks of free society as expressed well by Jefferson in the Declaration of Independence — that there are self-evident truths including unalienable rights of Life, Liberty, and the pursuit of Happiness.

There is precious little room for contrarianism on that score.

Same goes for gravity or entropy or a round earth.

We’re talking about bedrock things here for which a contrarian view will only put you into the shoes of Sisyphus, ever doomed to a wasted toil at rolling a large stone up a hill only to have it always roll back down. The takeaway from this is that Truth will out, so don’t try to fight it when it arrives. Gold as a superior savings asset (easily stored tangible/reliable wealth) is finally breaking free from the clutter of sloppy or indoctrinated paper-based thinking, just as the round earth upon a time long ago broke free from other bad habits of thought.

R.