Re: Public Awareness: Why Gold isn't 2000$/oz already
in response to
by
posted on
May 19, 2009 07:05AM
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"Gold bugs have been saying the same thing for the last 30 years that I can remember! You called the issue the average man in the street! Unless he believes gold is currency it is strictly a pretty piece of jewelry and today they just don't believe anymore!"
You are looking at the issue the wrong way. You're seeing the establishment view that money is paper, and paper is good, whereas gold is cumbersome, has no utility, and offers no interest. You are correct in thinking gold may never become attractive to the common man but that isn't and never has been the point. Gold becomes "attractive" only in the sense that paper money becomes repulsive. It must be gotten rid of as soon as one receives it for it will vaporize in value right before your eyes "like a block of dry ice in the sun." (a tip of the hat to Adrian Douglas for that analogy)
The days when this will happen are not far off.
Soon people will buy anything just to get rid of their paper money. In Germany people burned the currency because they could get more heat from the paper than from the wood they could buy with it. Your comment of 30 years is accurate as well. The cycle for gold catching up to the amount of "extra" money (deliberate inflation) that has been printed actually approximates a 30 year cycle so it is just about now due to "get even" with paper again.
P.