I have been pondering the iTulip message for some time and I think I am start to get it. Central banks are buying gold. It has been hard for me to grasp the true significance of this, which is huge, but at least I am getting it.
If I understand things correctly, both bonds and gold are being bought because central banks are buying gold and at the same time other investors (mutual funds, hedge funds, average guys like me, etc.) buy bonds.
So the question that bugs me is: why aren't central banks recommending people to do as they do and buy (some) gold? Not counting the Federal Reserve, which might be a special case of Asylum, many other central banks around the world actually care about their citizens, but I have yet to see a central bank (excepting China's to a certain extent) that recommends gold as part of a prudent investment.
It might be that my question is stupid, naive or absurd. I admit that am not Einstein and might be blind to the obvious answer.
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