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Gold: Extremistan / Mediocristan

Trevor sent this along , “Taleb’s extremestan/mediocrastan argument at it’s best.”
jpg links to full pdf.

4 Comments

  1. Trevor wrote:

    What is great about this slide is that the more likely hyperinflation may be, the less capital one needs to be tied up in gold for protection. I think a 3-5% allocation to the yellow metal is more than enough.

    Saturday, December 8, 2012 at 5:10 pm | Permalink
  2. John wrote:

    Thanks Trevor! I can imagine there would be a correlate with silver and other metals.

    Saturday, December 8, 2012 at 5:41 pm | Permalink
  3. Trevor wrote:

    Hey John. There may be, but I would not take the chance. Silver for example, has even greater leverage to gold, but it may not be regarded as “money” like gold is in extreme market stress like hyperinflation. From what I understand, gold is the only metal/commodity that trades on foreign exchange desks, alongside other major currencies.

    Sunday, December 9, 2012 at 6:48 am | Permalink
  4. John wrote:

    Thanks again Trevor

    Sunday, December 9, 2012 at 12:06 pm | Permalink

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