gold bug

(redirected from Gold Bugs)
Also found in: Dictionary, Encyclopedia.

Gold Bug

An investor or investment adviser who keeps a portfolio consisting largely or exclusively of gold and gold-related products, especially when most other investors are not doing so. A gold bug may believe that the economy is about to undergo a period of high inflation or that a speculative bubble is about to burst. He/she invests in gold because it tends to maintain its value, even in bad economic times, and because it is usually protected from inflation. Other investors often believe that gold bugs are alarmists. In the late 2000s recession, some gold bugs were associated with the Austrian School of economics, but this is not always the case. See also: Peter Schiff.

gold bug

An individual who thinks that investors should keep all or part of their assets in the form of gold. The tendency to recommend gold nearly always stems from the gold bug's expectation of rapid or uncontrolled growth of the money supply accompanied by high rates of inflation. Some gold bugs also predict economic collapse with gold becoming the standard of payment.
References in periodicals archive ?
"GOLD BUGS SAY THAT WITH THE WORLD (OR AT LEAST THE EU) GOING TO HELL IN A HAND BASKET - THE LEGENDARY 'SAFE HAVEN' METAL IS JUST TAKING A BREATHER BEFORE ITS NEXT INCLINE."
But gold bugs kept the faith -- even when prices stayed under $500 for nearly 25 years after their 1981 peak.
After the shooting, there was a lot of speculation about one of Loughner's comments on YouTube, "I won't pay debt with a currency that's not backed by gold and silver!" Writers at several outlets, including Reuters and The New York Times, noted that this sounds like something a gold bug would say.
On December 10th, 2009, with gold at $1,100 per ounce, Nouriel Roubini, professor of economics at New York University's Stern School of Business said, "all the gold bugs who say gold is going to go to $1,500, $2,000, they're just speaking nonsense." Roubini went on to say, "I don't believe in gold" and "gold can go up for only two reasons." Roubini pointed to inflation as being one of those reasons, but said, "we are in a world where there are massive amounts of deflation because of a glut of capacity, and demand is weak, and there's slack in the labor markets with unemployment above 10 percent in all the advanced economies."
Until then, bullion was viewed by many as a fringe holding for the rich with Swiss bank vaults or gold bugs who hoarded the metal to hedge against Apocalypse.
"The gold bugs may also be eyeing the not negligible risk that the Bank of England follows the Fed."
However, a report by the National Audit Office in 2001 concluded that the auctions of the nation's gold were conducted in line with best practice at the time and that the decision taken was against "a background of a decreasing market value of gold," - an important point for any nascent gold bugs who feel gold might look like a good investment.
Last December, many gold bugs were arguing that the price was inevitably headed for $2,000.
The weakness among gold stocks reflected by the 3.4 percent loss being shown by the NYSE Arca Gold Bugs Index.
dollars; even the staunchest gold bugs rarely have all their money in gold.
Commodities - Metals Gold and Silver Gain on Dollar's Decline Despite Thin Markets Gold - $1063.10 // $6.00 // 0.57% There is one thing on gold bugs' minds, the health of the US dollar.