But when the tech-market was bubbling, all we heard was that we had entered a "new" economy. And when the housing market was at its highest, the conventional wisdom had it that houses would always appreciate so buy, buy, buy.
This is different. This is driven by pure fear that the world's monetary system will collapse -- not euphoria about imagined, never-ending growth.
Unless Bernanke is fired and Paul Volcker replaces him, I can't see a single reason why people wouldn't continue to accumulate gold.
“This is different. This is driven by pure fear that the world’s monetary system will collapse — not euphoria about imagined, never-ending growth.”
It’s a ‘bubble’ in panic-phobia and the-end-is-nigh thinking. Understandable aftereffect of the 2008 meltdown, but what if it is over-estimating the issue?
But what if the international monetary system WONT collapse? What if the US doesnt have hyperinflation? Then what happens to gold vs dollar?
We are going through what Japan went through in the 1990s and they had bouts of deflation not inflation. Gold v Yen stayed low.
You are right about Bernanke though. he’s a dollar trasher. Another volker would get gold under $1000 imho.