Bad Dog

Gold: The Only Remaining Bubble?

Gold is constant. Everything else goes up and down. When gold looks like it is appreciating, it's just that everything else is weakening. People who are buying gold are betting that the dollar will become much weaker. Is gold shooting up? No, it's appreciating modestly as it should in line with the increased risk of owning stocks, bonds and cash. That's pretty much all there is to it. People are becoming very scared, as opposed to worried, which they were a few months back. Now they are scared. Wake me when they get to terrified.


On Feb 18 01:41 PM Randy_H wrote:

> 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.<br/>
>
> 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.

Nine Ways to Profit in 2009

Uh, that would be "borrow". A barrow is what you use to carry all those dollars around.


On Jan 02 08:18 AM y3115y wrote:

> Please tell if the printed money will cause inflation?
> We barrow from China to pay Russia now, but if China wants to cash
> in, then where can we barrow? May be Madoff could help.