The Wall Street Journal ran a front page article on the bull market in gold this morning: “Investors Rush To Gold” (subscription required), by ES Browning.
In it, Browning reviews how many investors, both individual and institutional, have been buying gold recently to protect against inflation, a weakening dollar, geopolitical problems and stock and real estate bubbles.
He interviews institutional money managers from Waddell & Reed, Bessemer Trust and Julius Baer Investment Management who have made big bets on gold. Individual investors are also piling into gold mutual funds such as the Oppenheimer Gold And Special Minerals Fund.
I by no means think this marks the end of golds run. That won’t come until we start seeing articles about gold in Newsweek, Time, etc…
Perhaps this marks the end of the beginning. Much of the smart money is now in. But the primary move in which the rest of the investment world piles in is still to be made.
Disclosure: Top Gun is long of gold in the form of the Gold ETF (GLD) and the Market Vectors Gold Miners ETF (GDX).