Showing posts from September, 2011

Pop Goes The Gold Bubble

Is Gold the new Bubble? - The Case Against Gold Gold today is hitting record levels, primarily due to the uncertainty surrounding world currencies, debt, and central banks around the world printing money to support their government spending (USA) and over-leveraged banks (Europe.) This will eventually have inflationary effects on commodities which have a real intrinsic value. What do I mean by “intrinsic value”? In the case of apples, I can eat the tasty fruit to survive, in the case of gas, I can use it to power my car, to heat my food and house. These commodities have value for all of humanity. Does gold have intrinsic value? Absolutely. Throughout history everyone from the Incas, to the Chinese, to the Europeans recognized the shiny metal’s beauty. It was used as a store of value. You could buy things around the world with gold. Today you can also use it as crown for a tooth, as well as a few industrial uses. So I’m not debating that gold has value, I’m trying to make to decide whethe…