A veteran of commodity trading has Pierre Brandt spat on Twitter with the gold bug Peter Schiff after mocking the brilliant year’s performance.
He attached the photo of a Krugerrand, which was the first gold bullion coin to be produced in 1967. Brandt, who purchased the coin in 1980, noted that it had only appreciated by a tiny 3% over more than four decades.
The legendary chartist further mentioned that his Krugerrand underperformed even the yield on Treasuries.
Brandt then sarcastically thanked Schiff for the “business tip”. In his response, the latter blamed Krugerrand’s disappointing performance on the poor timing of the purchase.
As Schiff noted, Brandt’s untimely trade coincided with the end of the decade-long gold bull market. The price of the yellow metal peaked at $ 850 per ounce in 1980 amid soaring inflation and heightened geopolitical tensions at the end of 1979.
This is because you bought at the end of a huge 10 year bull market at a price of #gold went from $ 35 per ounce to $ 850. Don’t blame the gold. Blame the bad timing on your part.
– Peter Schiff (@PeterSchiff) November 28, 2021
MicroStrategy CEO Michel saylor also joined the fray, saying it would be difficult to identify “any fortune” made with gold.
The idea of gold as money does not stand up to rigorous inspection based on first principles. It’s a myth told by commissioned sales professionals who intend to brand an industrial metal. It is a challenge to identify any fortune derived from an investment in gold bullion.
– Michael Saylor⚡️ (@saylor) November 28, 2021
Diversification is everything
Brandt says he has no problem with a 5% portfolio allocation to gold or Bitcoin. However, he challenges “dogmatic thinking”.
No problem with around 5% allocation to gold and BTC. Diversification is defensible. My reproach is always dogmatic thought which does not stand up to history.
– Peter Brandt (@PeterLBrandt) November 28, 2021
Previously, the trader criticized Bitcoiners for adding “Laser eyes” to their profiles, claiming he was responsible for a Bitcoin correction in late April.