lewy14

Are GLD and SLV Legitimate Investment Vehicles?

JS Kim - thanks for the moronic SEC/prospectus nonsense at the beginning - which a .19 sec Google search reveals to be normal boilerplate.

That was the "tell" that what followed would be pure tripe.

Because if that's the best you got, GLD must be pretty solid stuff.

Gold: Not Just for Gold Bugs Anymore

"Politicians across the political spectrum are equally critical of the limitations of a subjective central banking system capable of promoting violent economic booms and busts, which may threaten the very viability of their nation."

Um... didn't we get into this current crisis because of the "Great Moderation" - the taming of the business cycle and volatility in the Greenspan era? A good chunk of the criticism of Greenspan was that he didn't let the "busts" happen naturally.

No fiat currency has been stable long term... but then, no gold standard has been, either! People seem to forget that. Look at the history of the Progressive movement (the 19th century one, not the 21st century version) to see what kind of narrative you'd start hearing a dozen years after Gold Standard 2.0 is introduced.

Finally think about the dislocation that will be caused by gold suddenly being worth, what, some hundred thousand dollars an ounce or some such. The very idea will cause a scramble and panic the likes of which may be unrecoverable.

Think you'll profit by holding gold prior to a re-standardization? I doubt that's the way it would work.

In fact, if I were a world leader taking my country onto a gold standard, I'd first freeze the price of gold, and then seize it (with compensation at the frozen price), so as not to reward speculation, etc. Ample precedent.