Short-Term Key: Negative Long-Term Key: -30 (Neutral)
This morning in our office, someone jokingly quipped that with gold over $1,000 an ounce we might have to stop using gold bars as doorstops. I said, “Don't worry, they're insured.”
Of course, we don’t actually have gold doorstops, but if we did, the only thing to worry about would be theft. Gold has the unique advantage of being virtually immune to the physical risks that plague other assets.
For instance, unlike other commodities, gold will not degrade over time. Its beauty endures in a way that makes ageing film stars and fashion models green with envy. It does not oxidize and corrode like other metals do, nor is it fragile in any way.
True, gold's chemical properties can be replicated somewhat using silver or platinum, but neither of these comes as close to gold in attaining the Platonic ideal of timeless beauty.
Moreover, the gold supply has remained fairly constant throughout history.
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