Slate Money What Even Is Money?
40 snips
Oct 11, 2025 Gold prices have soared past $4,000 an ounce, prompting speculation on the reasons behind this spike. With Intercontinental Exchange investing $2 billion in Polymarket, discussions arise about the rise of prediction markets and their blurred lines with traditional betting. The hosts also delve into the quirky market for Bob Ross paintings, examining how charity auctions can skew art values and the implications of increased inventory on perceived rarity. It’s a fascinating look at contemporary financial trends and the art world!
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Gold's Strange Long-Run Outperformance
- Gold has outperformed the S&P 500 over the past 25 years despite producing no cash flows or utility.
- Felix calls gold a "barbarous relic" yet admits its long run returns force reconsideration of its role in portfolios.
Central Banks Drive Gold Demand
- Central banks, especially China, buy gold as part of foreign-exchange reserves rather than as an inflation hedge.
- Large central-bank buying can meaningfully move gold prices because of gold's deep but concentrated market liquidity.
Don't Copy Institutional Allocation Numbers
- Don't take institutional allocation rules as retail advice; Ray Dalio's model output isn't a do-it-yourself target.
- Felix warns model-driven high gold allocations often appear only after a bull run, which signals caution, not mimicry.
