Don't argue with Paul Tudor Jones

Every week a prominent money manger waxes poetic about gold and this week is no exception as Paul Tudor Jones sounds like a converted gold bug in his monthly letter to clients as recounted in this story at Bloomberg.

The time to hold gold is now as faster inflation and increased purchases through exchange-traded funds and by central banks boost demand amid stagnant mine output, Paul Tudor Jones’s Tudor Investment Corp. said.

“I have never been a gold bug,” Jones, whose company manages about $11.6 billion out of Greenwich, Connecticut, told investors in an Oct. 15 letter, a copy of which was obtained by Bloomberg News. “It is just an asset that, like everything else in life, has its time and place. And now is that time.”
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“As one would expect, rising inflation suggests higher gold prices, especially when the Fed is perceived to be behind the curve,” according to the letter. “Gold appears to be cheap. In our view, gold’s value should increase as its scarcity relative to printed currencies increases.”

Interestingly, as stocks were getting shellacked today and the dollar was surging, the gold price ended the day about where it began - less than two percent down from its all-time nominal high of a couple weeks ago.

This begs the question of whether we'll ever see a three digit price for the yellow metal again.