Randy_H

Gold: The Only Remaining Bubble?

Also Treasuries are *not* in a speculative bubble. Speculative bubbles are Greed-Bubbles. The housing bubble was a Greed-Bubble. The Dot-Com bubble was a Greed-Bubble.

The fear of missing out on gains, and therefore losing out relative to those who play.

What's happening in Treasuries is a Fear-Bubble. That's a whole different animal. It's the fear of losing, period. It's a hell of a lot harder to pop a fear bubble than a Greed-Bubble. The Fed & their international friends are learning that lesson right now.

Gold: The Only Remaining Bubble?

Gold is not a "hard currency". It is a store of value, of sorts, but not a currency. It's also a commodity with commercial and industrial application. It's also a vehicle for speculation and hedging.

All currencies are fiat in the end. Even gold coins with a silhouette of the king stamped on them. Beyond a kingdom of a few thousand subjects, currency is necessarily authorized and regulated. Thus, fiat. If a new king comes along, you can't melt your old gold and put the new king's face on it (without paying tribute to your monarch) without losing your head for counterfeiting.

People keep confusing Gold, Commodity-indexed fiat currency systems, Floating exchange-based fiat currency systems, and barter. I get the sense what most are hoping for is a total breakdown of currency and a reversion to barter.

Be careful what you wish for.