Goldbug ping
Well let’s count how many ways this is trite old rehash:
- no dividend, check
- you can’t eat it, check
- what if you bought it at the tippy tippy top, before you were born?, check
Then he waves his hands about how much “surplus” gold there is, using as the absolutely worst mental image possible, how many bullion coins the Mint could make with it. Does anybody remember exactly how many times in 2008 and 2009 the Mint stopped accepting orders because they couldn’t get material? Four, five, more?
And people are buying gold and hanging on to it, that’s why the price is high, because there’s less of it out there?
His first installment of this series came out on May 25, the very day of gold options expiration, notorious and easily proven for almost every month of the last year to be as the time when gold hits its monthly bottom.
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Whoops, I didn’t even see that graph, he compares the graph of gold to graphs of the housing bubble and the tech-stock bubble. Yes investors, every graph that shows a constant compounding of the original investment over a carefully chosen timeframe is a good indication that the underlying fundamentals are all the same.
Wow, to think that gold production will magically double, triple, increase by a factor of ten — fifty? a hundred? — as we saw in the production of internet stocks, that’s a journalistic and economic crime itself.
Even to compare it to the housing bubble, where the number of housing starts only doubled from 1991 to the top, and prices went up by a factor of up to five-fold, is irresponsible. Nobody’s trying to wreck the economy by handing out interest free loans to bums so they can buy gold.