Investing in Gold: Marriage, Baby Boomers and the case for Gold - CNBC

[mickjohn]

An article from CNBC that links market booms with different stages in the baby boomers life cycle.

Easy reading from a Mainstream source. Obvious (not so) subtle reference to cyclic nature of investing.

With the Baby Boomer generation getting older and the market increasingly volatile, there has been a lot of debate about how the aging population can find an investment that will help pay for their retirement.

"Keep in mind that Baby Boomers aren't going to go back to spouse number 1 (stocks). They tried that game in the 1990s and got burned. But offer them a safe dividend yield, and that's likely an asset class with which they would be happy to spend winters in Boca," he said.

The asset which Colas believes the Baby Boomers are now feeling good about in their third marriage, then, is gold and other precious metals.

"If the demographic explanation for big moves in capital markets is to have any validity, it has to explain gold. The yellow metal is well into its 11th year in rally mode, which makes me think that perhaps Boomers were seeing gold 'on the side' when they were still married to their houses."

Link: http://www.cnbc.com/id/44297897/