In yesterday’s screencast we noted how the run-up in Netflix (NFLX) had caused it to become a ‘battleground stock.’ The same could also be said about gold. The shiny metal has had smooth sailing for the past two years and has attracted a raft of admirers, not least of which are high profile hedge fund managers. Doug Kass for one thinks that gold could have a much more volatile year in 2011. Other observers wonder whether gold at these price levels isn’t the store of value it is made out to be. We should also acknowledge that the run up in gold has been fueled in part by the existence of gold ETFs that make it very easy to own (and eventually) sell. In today’s screencast the ambiguity behind gold’s true value make it all the more likely that gold could be headed for some more price volatility.
Items mentioned in the above screencast:
Doug Kass thinks gold is at risk of a fall and more price volatility. (TheStreet)
Howard Marks on the value of gold. (OakTree Capital Management)
Fund marketers had an important role in the rise of the gold ETFs. (Abnormal Returns)
Why don’t gold mining companies pay dividends in gold? (The Reformed Broker)