Monday, May 18, 2009

Nassim Taleb On Precious Metals

Nassim Taleb authored two great books "The Black Swan" and "Fooled By Randomness". After reading either one, you conclude that this guy is really bright. "The Black Swan" continues to be a hot "buzzword" for the unpredictable rogue wave lurking out in the future.

Recently, he was quoted on his prediction for gold and copper. Bloomberg states:
The current global crisis is “vastly worse” than the 1930s because financial systems and economies worldwide have become more interdependent, “Black Swan” author Nassim Nicholas Taleb said. “This is the most difficult period of humanity that we’re going through today because governments have no control,” Taleb, 49, told a conference in Singapore today. “Navigating the world is much harder than in the 1930s.” The global economy is facing “big deflation,” though the risks of inflation are also increasing as governments print more money, Taleb told the conference organized by Bank of America- Merrill Lynch. Gold and copper may “rally massively” as a result, he added. Taleb, a professor of risk engineering at New York University and adviser to Santa Monica, California-based Universa Investments LP, said the current global slump is the worst since the Great Depression that followed Wall Street’s 1929 crash.

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