Gold: Listen to This Interested Observerhttp://www.fool.com/investing/general/2013/06/24/gold-you-should-listen-to-this-interested-observer.aspx Alex Dumortier, CFA
June 24, 2013
Global markets were rattled by China today as the SSE Composite fell 5.3%. The S&P 500 (INDEX: ^GSPC) and the narrower, price-weighted Dow Jones Industrial Average (INDEX: ^DJI) finished down 1.2% and 0.9%, respectively.
Unsurprisingly, then, the CBOE Volatility Index (VIX) (INDEX: ^VIX), Wall Street's "fear index," rose 6.4% to close above 20 for only the second time this year -- the first time was last Thursday. (The VIX is calculated from S&P 500 option prices and reflects investor expectations for stock market volatility over the coming 30 days.)
Gold: A professional worth listening to
A corollary of that observation is that when someone whose salary depends on not understanding something does understand it, one should take them seriously. Tom Kendall is one such person. As head of precious metals research at Credit Suisse, the prestige and visibility of his position (if not, perhaps, his salary) is partially contingent on an inability to identify the deflating bubble in gold.
Nonetheless, Mr. Kendall, speaking on CNBC, had a warning for gold bulls: