Source: Fortune.com
Summary
Tom Lee, Fundstrat’s head of research, discussed the potential risks and benefits of gold at a podcast recording. He mentioned that gold is a “demographic story” and a “Lindy effect” asset, meaning its value is accepted as a store of value. Lee also presented a “black swan” scenario where Elon Musk, the world’s richest man, discovers a new asteroid and becomes the world’s central banker.
Our Reading
The numbers tell one story.
Gold is a demographic story, according to Lee, and a Lindy effect asset. He sees a “black swan” tail risk where Elon Musk becomes the world’s central banker after discovering a new asteroid. Lee estimates that there’s a million times more gold underground than above ground, and this could create perverse incentives. He also notes that gold is “all extraterrestrial,” suggesting that space companies could discover more gold in space. Lee concludes that gold has probably topped based on Fundstrat’s research.
Original Observation: This is a classic example of a “black swan” event, where a previously unimaginable scenario becomes reality.
Author: Evan Null
