Why Roubini is wrong on gold
Professor Nouriel Roubini, the man who predicted the financial crash, thinks gold is in a bubble. In part, he's right. But if he thinks gold's not in a long-term bull market, he's mistaken.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Twice daily
MoneyWeek
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Four times a week
Look After My Bills
Sign up to our free money-saving newsletter, filled with the latest news and expert advice to help you find the best tips and deals for managing your bills. Start saving today!
Bad news for gold bugs: Professor Nouriel Roubini, the man who, as the FT puts it, "came to fame for predicting the global crash in financial markets", still refers to gold as a "barbaric relic".
But even worse than that, he thinks our favourite metal is "in part a bubble that could easily go bust". I don't entirely disagree with him.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
But I still believe that gold is in a long term bull market, one that is still a long way from its end, and one that isn't going "bust" any time soon.
Why? Because the supply and demand fundamentals are good. There is little new supply mine supply has been falling on and off for years, and the central banks who used to regularly flood the market are now buyers rather than sellers. But there is plenty of new demand both from those central bankers and from investors who, thanks to ETFs, now have an easy way into the market.
The key point here, however, is not that there is new demand for gold. It's why there is new demand for gold.
Roubini says that he can only see one scenario in which gold would "rapidly rise in value": one in which "fiat currencies are rapidly debased via inflation". Clearly, he doesn't think that is very likely (or he'd be a gold bug too). I think it's a dead cert. Not this year, maybe not even next year, but at some point before the crisis is fully played out.
That's why I'm hanging on to my gold.
-
ISA fund and trust picks for every type of investor – which could work for you?Whether you’re an ISA investor seeking reliable returns, looking to add a bit more risk to your portfolio or are new to investing, MoneyWeek asked the experts for funds and investment trusts you could consider in 2026
-
The most popular fund sectors of 2025 as investor outflows continueIt was another difficult year for fund inflows but there are signs that investors are returning to the financial markets
-
House prices to crash? Your house may still be making you money, but not for much longerOpinion If you’re relying on your property to fund your pension, you may have to think again. But, says Merryn Somerset Webb, if house prices start to fall there may be a silver lining.
-
Prepare your portfolio for recessionOpinion A recession is looking increasingly likely. Add in a bear market and soaring inflation, and things are going to get very complicated for investors, says Merryn Somerset Webb.
-
Investing for income? Here are six investment trusts to buy nowOpinion For many savers and investors, income is getting hard to find. But it's not impossible to find, says Merryn Somerset Webb. Here, she picks six investment trusts that are currently yielding more than 4%.
-
Stories are great – but investors should stick to realityOpinion Everybody loves a story – and investors are no exception. But it’s easy to get carried away, says Merryn Somerset Webb, and forget the underlying truth of the market.
-
Everything is collapsing at once – here’s what to do about itOpinion Equity and bond markets are crashing, while inflation destroys the value of cash. Merryn Somerset Webb looks at where investors can turn to protect their wealth.
-
ESG investing could end up being a classic mistakeOpinion ESG investing has been embraced with enormous speed and zeal. But think long and hard before buying in, says Merryn Somerset Webb.
-
UK house prices will fall – but not for a few yearsOpinion UK house prices look out of reach for many. But the truth is that British property is surprisingly affordable, says Merryn Somerset Webb. Prices will fall at some point – but not yet.
-
This isn’t the stagflationary 1970s – but neither is it the low-rate world of the 2010sOpinion With soaring energy prices and high inflation, it might seem like we’re on a fast track back to the 1970s. We’re not, says Merryn Somerset Webb. But we’re not going back to the 2010s either.
