I love listening to the anti-gold nitwits who call it a barbaric relic. They put their faith in pieces of paper produced by central bankers and politicians. Do you need any more proof than what is happening to the people of India? Their politicians have been running large deficits over the last few years. They have been able to do this because Bennie and his fellow central banker buddies have been printing prodigious quantities of paper money. The hot money crowd was willing to fund India’s deficits, hoping for a better return than the .50% they could get in US Treasuries. It seems even the talk of tapering was enough to scare the hot money crowd out of the emerging markets. The Indian Rupee has fallen 30% against the USD in the last five months. India imports all of their oil and a large amount of their food – all priced in dollars. How do you think the average Indian is doing now?
The government is in disarray. They are scrambling around with price controls, laws against buying gold, etc. This is what politicians across the world do. They create problems and then create solutions that create worse problems. If you were an Indian with $100,000 worth of Rupees in March, 2013 and converted it into gold you would have gold worth $106,000 today. By holding onto your Rupees, you have Rupees valued at $70,000 today. Do you get it?
Gold is not an investment. It is an insurance policy against the idiocy of central bankers and politicians. Keep believing the USD will always be the world’s reserve currency. Just because Bennie is printing $120 million of new dollars per hour doesn’t mean the USD will be worth less in the coming years. Right? Have some faith. Don’t buy that barbaric relic with your fiat dollars just because every paper currency in history has reached its true intrinsic value of zero. Believe the propagandists for the state who tell you gold is nothing but a giant bubble. Everyone knows that when gold makes up 0.5% of all global assets, it surely is in an epic bubble.
Some ideas are so stupid that only an intellectual, academic, central banker, politician or Wall Street shill could believe it.