By Myles Udland
Jim Grant thinks that gold is misunderstood.
Grant, the publisher of the widely respected Grant's Interest Rate Observer, said at a recent conference that gold is not a hedge on monetary disorder because it's an investment in it.
According to Matt Borin at the CFA Institute, Grant told the crowd at a recent conference of the New York Society of Security Analysts that the "case for gold is not as a hedge against monetary disorder, because we have monetary disorder, but rather an investment in monetary disorder."
Grant noted that the $11.7 trillion in negative-yielding bonds has created an untenable situation in financial markets. This is Grant's monetary disorder.
"Radical monetary policy begets more radical policy," Grant said. "It seems to me, at some point, markets or voters will put a stop to this."