Gold (2016)

Trader's Film Library #45 · Frauds and scandals. Gold that didn't exist, and a market that wanted to believe in it.

Original title: Gold · Type: film · Created by: Stephen Gaghan · Usefulness for traders: ★★★☆☆

What it's about

Kenny Wells (Matthew McConaughey), a businessman on the verge of bankruptcy, discovers a gold deposit in Indonesia with a geologist. The company's shares soar and Wall Street falls in love with the opportunity. Inspired by the 1990s scandal at the Canadian company Bre-X.

What it has to do with markets

The Bre-X story is one of the biggest scandals in mining history: the drilling results turned out to be faked, and the shares lost almost all their value. The film shows how easy it is to believe a story you want to hear.

Lessons for traders

• a good story isn't proof (the narrative fallacy, Atlas of biases #26)
• if everyone's buying, check the fundamentals (herding, Atlas of biases #31)
• exploration companies are a high-risk market

What to watch out for

The plot changes the facts of the Bre-X affair considerably.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

← #44 Madoff on Screen: The Monster of Wall Street, Chasing Madoff and the 2014 Documentary · Film Library index · #46 Die Affäre Cum-Ex →

The description outlines the plot without revealing the ending where possible (true stories have a known outcome). Educational content, not investment advice.