Saturday, March 23, 2013

Gold Not ‘Antifragile’ Enough - Taleb

Given Taleb’s conviction that overgrown banks and rampant money creation are badly destabilizing the financial system, it’s natural to think he would take refuge in gold, which is why a conference attendee asked him whether gold represents part of his stable-value portfolio ballast.

He answered that he used to believe in this role for gold. But now, he says, “It’s too neat a narrative, gold.” He seems to mean that gold owners believe too avidly in the inviolability of the metal, and have constructed too elaborate a reassuring story about why it must perform as expected.

“Central banks own gold,” he notes, as if that is a self-evident indictment. And: “Something that doubles [in value] in no time can’t be a real store of value.”


- More Here from Taleb, author of Antifragile:Things That Again From Disorder


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