Firstly, gold is not an investment, it is inert money without counterparty risk, unlike dollars etc. ETFs and gold mines are investments which hinge on the price of gold in fiat currencies.
Otherwise I find no fault with your cul-de-sac theory. And I would add that part of the collapse of paper currencies will at some stage lead to a rush into gold increasing its purchasing power above where it would otherwise be.
Just make sure it's not your house being burned down!
I agree about manipulation. So far as I'm aware, H.D.Macleod is no relation. It's a pity that he is not widely read today. The creation of bank credit today is exactly the same as it was in his day!
It seems increasingly evident that we have little knowledge of the full extent to which markets can be manipulated, and the oil markets have become a case in point. Listening to the official narrative of these markets is nauseating. Thank you Alisdair for all your work. I am reading 'The Elements of Banking' by H.D. Macleod. A family member I presume. Thanks again, Ed.
Firstly, gold is not an investment, it is inert money without counterparty risk, unlike dollars etc. ETFs and gold mines are investments which hinge on the price of gold in fiat currencies.
Otherwise I find no fault with your cul-de-sac theory. And I would add that part of the collapse of paper currencies will at some stage lead to a rush into gold increasing its purchasing power above where it would otherwise be.
Just make sure it's not your house being burned down!
I agree about manipulation. So far as I'm aware, H.D.Macleod is no relation. It's a pity that he is not widely read today. The creation of bank credit today is exactly the same as it was in his day!
It seems increasingly evident that we have little knowledge of the full extent to which markets can be manipulated, and the oil markets have become a case in point. Listening to the official narrative of these markets is nauseating. Thank you Alisdair for all your work. I am reading 'The Elements of Banking' by H.D. Macleod. A family member I presume. Thanks again, Ed.
Yes, but...
factor in that gold's purchasing power is remarkably stable, while fiat's can decline for no other reason than loss of faith in it.