Gold returns to downside amidst a growing sense of unease in financial markets
Klarman says there is no such thing as an ‘omniscient Federal Reserve’

(USAGOLD – 6/23/2022) – Gold returned to the downside this morning amidst elevated recession concerns, a firm dollar, and a growing sense of unease about where financial markets might be headed. It is down $7 at $1833. Silver is down 17¢ at $21.33. “The market has come to believe in an omniscient Federal Reserve, and it’s no such thing,” says Blaupost’s Seth Klarman, the highly regarded billionaire investor, in a recent interview with Harvard Business School. “These guys don’t really know what they’re doing in any deep way. It’s a giant financial experiment, and we’re at the mercy of their experiment that maybe is right now in the process of going wrong, so God help us.”

Klarman goes on to say that he is a “fan of gold” for safe-haven purposes. “I think gold’s valuable in a crisis. If the world turns to hell, the war expands and gets worse, God forbid a nuclear weapon is used, I think people are going to say: ‘How do I know what anything’s worth anymore? I’m going to make sure I have some gold because I don’t want to not have money at a time of desperation.’ It may never come to that, but I think it’s prudent to have a little bit of your portfolio in gold.”

ramirez cartoon of the economic train wreckCartoon courtesy of MichaelPRamirez.com

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