GOLD MAKES AN ALL TIME HIGH - NOBODY IN THE US NOTICES

 

Gold has made an all time high, rocketing nearly 100 dollars since inauguration day.  Yet nobody in the US has the slightest interest.  We know that because inflows into the GLD ETF move between modestly positive to modestly negative month to month.

Interest in China, Russia, South America, Eastern Europe, Much of Western Europe and the Middle East is at an all time high, led by Central Bank purchases in all of those areas.

But here in the US interest is high in Bitcoin, AI, Trump Meme Coin, Dawgz AI, and Black Box Private Equity Bundles.

This is not a joke.  Nor is it an exaggeration.  Pension Funds across the US are loaded up with "investments" that have no track record, little to no liquidity, and in many cases, no mark to market information.  And not just pension funds, many US investors have borrowed to the hilt to get in on these "opportunities."

Meanwhile, globally the interest in old fashioned boring Gold, Real Estate, Old Master Artworks, Diamonds, and other deathly boring investments are soaring.  The Swiss Federal Pension fund has Gold now as it second highest percentage investment.  The Florida Pension Fund has Bitcoin (bought at an all time high) and Private Equity Black Box investments as its top two "investments."  And when I say Black Box - that means not only are the returns opaque, they don't even know what investments are in the bundles.  The PE firms say that if they told, they would lose their edge.  Seriously.

What is the reason for this extraordinary disconnect?

One thing that might account for the difference in investing strategies is that the Swiss Pension fund has Investmtent Executives with an average of 30 years of proffesional investing experience on its board.  The Florida Pension fund is managed by political appointees none of whom have any proffesional investing experience.  None, not a single one.  They are all lifetime political hacks.  That is not a joke.  Certainly not for the the citizens of Florida. 

According to Warren Buffet the entire US pension fund system is broke on a mark to market basis.  But that's just Warren Buffet; he's really old, so he probably just doesn't get it.

So far AI has little to no monitizable value for the companies that have loaded up on purchases.  This is because AI makes mistakes that are impossible to check without countless editing man hours.  So any company that can be sued for an AI error can't use AI.  That's most of corporate America.

I'm sure some day they'll overcome this drawback.  But right now they're not close.

And as for Black Box investing - Well the financial crisis of 2008 was caused by excactly that type of black box bundling.  It's happening again less than 20 years later.  Repeating the same mistake and expecting a different outcome is the definition of Insanity.

So it is American Exceptionalism or American Insanity?

I don't know.  But Gold is betting that it's the latter.

And I'm betting on Gold.

And eventually some Americans will catch on.  Then the price will really soar.