Zoltan Pozsar: Buy gold


He’s been wrong so far. Zoltan’s grand analogy between financial plumbing and commodity supply chains is beautiful but it comes up short in the real world for various reasons. 

The problem is, Zoltan is a monetary not commodities analyst and, try as he does, he cannot jam the square peg of commodities (which are by definition worthlessly common) into the round hole of financial reserves (which are by definition scarce). 

Hence he is forced to use excuses for his miscued price forecasts such as “if this had not happened”…

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.