Skeptic Project

I just had a thought that I wanted to share. Obviously gold will likely never be worth zero, but currently it's being over-speculated, and thanks to far-right radio shows, tv shows, and of course conspiracy theorists, people keep investing in it. We have had gold panics in the past, and my spider senses are tingling.

They (my spider senses, not the Illuminati) are telling me that when/if gold peaks, and crashes, it will not be the result of paying far more for something than it's worth -- or more than people are willing to pay for it, but rather some grand conspiracy to have people lose their money.

This is definitely something to think about. If various CTs are right, and gold tops $3,000 - $5,000 an ounce, it will inevitably crash as interest rates are tightened to reel in inflation.

On a side note: I listen to talk radio every day, Glenn Beck, Rush Limbaugh, Sean Hanity, and Michael Savage (as well as a few others who appear from time to time), and the "buy gold!" commercials are played nearly every commercial break. Gold was a good investment when it was $500 an ounce, but as it gets higher, it becomes a bad investment as the potential ROI becomes lower and lower. Over the years I've noticed this idea is lost on the average person, as they believe -- for example -- buying a stock that's gone down is a bad thing, while buying a stock after it's gone up is a promise of a good thing. I see a connection between that and gold.

Like I said, gold may never be worth zero, but that doesn't mean the price grows infinitely either. Of course, CTs and others never make bad decisions and bad things never happen due to poor choices; only grand conspiracies.

Mark my words, if/when gold crashes, it will be considered a grand conspiracy, not piss poor planning and bad understanding of economics.

That's really interesting Edward. And I agree, it will go down and probably faster than most people are comfortable with. While I think gold will always be a sound investment (at a reasonable price), there does appear to be a great deal of 'panic buying' ever since the recession started. Also, I think most amateur economists (read: Austrians) seem to be entirely ignorant to the concept of the business cycle. Furthermore, those who preach gold standard, silver standard, or a bi-metallic standard - fail to ever mention previous economic problems our country faced while engaging in such policies. Off the top of my head, there are the following:

Recession in 1882

1893-1894

And Bretton Woods, a really interesting system that I do not know enough about but was scaring the hell out of economists at the time due to a lack of silver and gold reserves.