Cathie Wood Warns The Real Bubble Is Gold As Robin Brooks Exposes 'Bogus' Central Bank Buying Myth

Core Viewpoint - The investment community is being warned that the recent surge in gold prices is a speculative bubble that may soon burst, as indicated by Cathie Wood of ARK Invest and former IIF Chief Economist Robin Brooks [1]. Group 1: Gold Market Analysis - Wood highlights that the current market capitalization of gold as a percentage of the U.S. money supply (M2) has reached levels not seen since the Great Depression, suggesting a "parabolic move" typical of the end of a market cycle [2][4]. - The ratio of gold to M2 has reached an all-time high, matching the peak recorded during the Great Depression in 1934, when the dollar was devalued by nearly 70% [3]. - Wood asserts that the real risk lies in precious metals rather than technology, predicting that a strengthening dollar could lead to a significant decline in gold prices, similar to the drop of over 60% from 1980 to 2000 [4]. Group 2: Central Bank Narrative - Brooks challenges the prevailing narrative that institutional diversification is driving the gold rally, claiming that this perspective is fundamentally flawed and that the rally is primarily fueled by retail speculation [5]. - He argues that many analysts are misinterpreting price appreciation as actual buying activity, suggesting that the correlation between gold prices and central bank reserves does not indicate genuine demand from central banks [6].