Opinion: Buying gold on the ‘Roubini Dip` - #GOLD ANALYSIS - Mineweb.com

Opinion: Buying gold on the ‘Roubini Dip'

Doom and gloom economist Nouriel Roubini appears to be more than a little fallible in his predictions in the past three years, so should one take his latest twitter anti-gold gibe as a buying indicator?

Author: Lawrence Williams
Posted:  Wednesday , 09 May 2012 

LONDON (MINEWEB) - 

U.S. economist, Nouriel Roubini, has gained a great, largely self-promoted, following from his prediction of the 2007/8 global market and U.S. housing crash.  In this he was hardly alone, but somehow seems to have cornered the market in accolades for his supposedly remarkable prescience!  But, since then many of his prognostications have been so far from reality that he is perceived by some as more of a laughing stock than a great seer.  His saving grace though is, that given time - maybe a decade or so - some of these predictions will undoubtedly come true.  The stock market will crash again, gold will find itself in a bubble - and he'll be able to say ‘I told you so' if it actually happens in his lifetime!

Take this article from website Seeking Alpha a couple of years ago - The 'Great' Roubini: Wrong Again and Again - which implies grievous losses for investors if they had followed his advice - and he is at it again on gold - one of his perennial bêtes noires - as Dublin-based gold website GoldCore points out today: "Nouriel Roubini has again taken to Twitter to engage in his semiannual bout of name calling and frequent suggestions that gold is a bubble and that gold will fall in price. He has been doing so since gold rose above $1,000/oz in 2008.

From a contrarian perspective, Roubini is a gift as his name calling and anti-gold comments almost always coincide with an intermediate low in the gold price."

Now maybe it's tempting fate to put your faith in buying the Roubini dip as GoldCore suggests - both gold and silver were off their bottoms at the time of writing - but in these markets prices can move fast, up or down, and there's still no clear direction apparent.  At the moment the impetus appears to be with the bears, but the ongoing global economic turmoil and Central Bank money printing does suggest the movement should revert to the other direction - at least eventually, but who knows where it will land first!

Its also easy to be critical of Roubini - he's a bit of a hate figure among gold bulls and a number of other economists and commentators.  While some of his utterances are probably not unreasonable from an economist's perspective, but things just haven't worked out that way in reality. 
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