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Gold - Not the Safe Haven People Think it Is

How is the value of gold more than purely psychological? The primary driver in the recent run up in gold is fear. In fact, I would say the value of gold is far more psychological than that of dollars.

Next time you're at the grocery store, try paying in gold and see what happens.

And if you want true protection against massive inflation and/or currency devaluation, buy a house. I'm sure you wouldn't mind the value of your mortgage "reverting to its intrinsic value" over time.


On Dec 10 01:55 PM E.D. Hart wrote:

> The US dollars value is purely psychological, and only accepted as
> valuable because it is backstopped by the "full faith and credit
> of the US Government." In short, the ability of our government to
> tax and borrow.
>
> Every paper currency ever created has reverted to its intrinsic value
> given enough time.
>
>
> Gold has had value in every society ever discovered, from tribes
> in the Amazon, the Egytians, the Macedonians, Greeks, Romans, and
> Byzantines. Gold has 10,000 years of history as a store of value.
>
>
> To say golds value is purely irrational and psychological begs the
> question: compared to what?