{"id":89660,"date":"2026-02-02T07:52:56","date_gmt":"2026-02-02T07:52:56","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=89660"},"modified":"2026-02-02T07:52:56","modified_gmt":"2026-02-02T07:52:56","slug":"the-price-of-exuberance","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2026\/02\/02\/the-price-of-exuberance\/","title":{"rendered":"The price of exuberance"},"content":{"rendered":"

The fools who parted with their money to buy gold, thinking it was a safe haven, are paying a high price for their folly. This is the gold price chart<\/a> from the FT this morning:<\/p>\n

\"\" \"\"<\/p>\n

Silver is also polummeting, as is oil, as its chart shows<\/a>:<\/p>\n

\"\" \"\"<\/p>\n

At prices like this, much of US shale production is loss-making, and there is nothing to be made from further North Sea oil exploration.<\/p>\n

So what is happening?<\/p>\n

It could just be a correction.<\/p>\n

It could be an indication that the headless chickens in the financial markets have no idea what they are doing.<\/p>\n

It could be a sign that the realisation has dawned that commodities of any sort are not a safe haven if the world is really going into recession.<\/p>\n

It may just all be a blip.<\/p>\n

One thing can be said for sure, which is that markets are not rational and most definitely do not set prices based on all available data. There has been no significant change in data over the last week. Prices have, however, changed radically.<\/p>\n

What happens next? The moment of a recession's onset rests with those who trade in markets like these and the stock market, where irrational exuberance persists. This is the world neoliberalism has built. We will all pay the price for it.<\/p>\n","protected":false},"excerpt":{"rendered":"

The fools who parted with their money to buy gold, thinking it was a safe haven, are paying a high price for their folly. This
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