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Kindle Notes & Highlights
by
Sven Carlin
If global economies continue to slow down despite future monetary stimulus or high inflation, anything related to gold would skyrocket. I wouldn’t be surprised to see gold above $5,000 per ounce in such a scenario. Think $5,000 is too much? Well, don’t forget that gold was trading at only just $260 per ounce in 2001.
This all goes to show that it’s extremely important to position yourself in investments that have the opportunity to grow at an extreme in the next 20 years while leaving the average to average investors and the below average to those who just buy whatever is trendy at the moment.
Taleb explains that it’s wrong to use averages to measure all things because what makes an average is so variegate, that many things will exceed what we’ve prepared for, both on the upside and downside.
The things extreme investments
have in common are limited supply and expected stability.
Given the global expansive monetary policies, we can continue to expect a constant increase in the supply of money which makes price explosions like the ones we described at the beginning of this article even more likely to happen in the future.
