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To: Zeneta
I contend that Gold has very little economic value. It is certainly not a measure of economic growth, activity or anything other than some arbitrary measure of wealth.

Probably so. Gold would probably return to being worth backing currency with if most of civilization collapsed and we had to start all over. In such a situation the full faith and credit of pretty much no nation would be worth much, so currency would need to be backed up by something other than promises again.

But in this day in age, the goldbugs just don't get that we are not ever going to go back to the gold standard short of a total collapse, prepper wonderland type situation.

If you believed these goldbugs (many of whom are conspiracy theorists) then gold rich countries like South Africa, China and Australia should be mining like crazy because he who has the most gold wins the game. Unfortunately, the global economy simply doesn't work that way. Not at all.

Some gold is a good commodity to have in one's portfolio, but I think most treat it as a short term bet against paper currencies.

35 posted on 07/18/2014 7:23:04 PM PDT by Longbow1969
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To: Longbow1969

At the end of the day I’d gladly give you a bar of gold for 100 barrels of oil.


37 posted on 07/18/2014 7:34:51 PM PDT by Zeneta (Thoughts in time and out of season.)
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