As many of you fervent Gold followers have already absorbed, the big-mouth banks are now on record as pooh-poohing the precious metals for 2014. With prognosticated ranges for Gold extending to as low as $1,000/oz., the average price as we flow through ’14 is forecast by the $treet $ibyls to be in the $1,200/oz. area. Given that we live conditioned in the mediaized land of “well they said it so it must be true”, allow us this query:

If Gold in a year’s time is to be at best ’round where ’tis today, why not simply bail out straight away and bankroll the proceeds into a one-year Treasury Note, the current yield-to-maturity of which is 0.14%? Not only shall you sleep assured that by the full faith and credit of the U.S. Treasury you’ll receive the Note’s par value in a year’s time, but moreover: on every $1,000 Note you purchase you’ll effectively earn $1.40 (before transaction costs).

‘Tis, I suppose, perhaps a daft choice to opt for that T-Note after all, especially given an S&P 500 proven to have risen better than 27% in less than one year. That’s certainly to stay in vogue, non? But then: there’s the Terrible Taper…

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