Many investors point to Kondratiev waves (also called supercycles or long waves) as a reason to invest in gold. The best-known advocate of the Kondratiev cycle may very well be Jaap van Duijn, a former executive of the Dutch asset management firm Robeco. A Dutch newspaper, Volkskrant, cites him: "Nobody exactly knows how the waves work, but everyone has to deal with them, just like gravity." Van Duijn emphasizes: "The economy is an organic whole. You almost have to look at it with the eyes of a... »

On November 5th 2008, Queen Elizabeth visited the London School of Economics. Her wealth had just decreased by more than 25 million pounds. The financial markets were in fire and flame and Her Majesty wasn’t spared during the market’s massacre. The Queen’s response? She asked, aloud, "Why did nobody see this coming?"

Perhaps you’ve heard of John Hathaway; he is a senior portfolio manager of the Tocqueville Gold Fund. Earlier this week he wrote in Barron’s that "an acute shortage of gold can boost prices." But, as mentioned in our previous articles, his analysis is wrong. As the supply and demand dynamics of gold are unlike those of other commodities such as rice or wheat, there cannot be an acute shortage. After all, gold isn’t consumed, so there is never an actual physical shortage. But that’s not the error I want to discuss today.... »